Austin Capital Management

Austin Capital Management

Austin Capital Management Securities Settlement

This settlement involves the settlement of two lawsuits brought under the securities laws on behalf of investors and one brought under ERISA on behalf of employee benefit and retirement plans.The lawsuits were settled for $6.85 million in cash. The following is a summary of the proceedings in these lawsuits: ‘The lawsuits in the MDL, which arise from the Bernard L. Madoff scandal, allege that the Defendants violated the federal and state securities laws, ERISA, and the common law. The Class Representatives invested in certain Austin Capital Funds that in turn made investments in the Rye Select Broad Market Prime Fund, a fund whose investments were managed by Madoff. As a result of Madoff theft of the assets of the Rye Select Broad Market Prime Fund, the Austin Capital Funds lost value and the Class Representatives investments in those Austin Capital Funds also lost value. The Class Representatives allege that the Defendants acted imprudently by allowing some of the Austin Capital Funds assets to be invested in the Rye Select Broad Market Prime Fund, that Defendants knew or should have known of the true nature of Madoff scheme, and that Defendants made false or misleading statements about their investment and due diligence practices.’

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