Bernard L. Madoff Investment Securities LLC (2009) (S.D.N.Y.

Class Period: Before Dec 10, 2008

Summary of Case:

Summary of the Case:

A securities class action has been filed against Bernard L. Madoff Investment Securities LLC (2009) (S.D.N.Y.) (Plaza Investments International Ltd.) on behalf of all persons or entities who owned shares of the Plaza Investments International Ltd. (the "Plaza Fund" or the "Fund") as of December 10, 2008 in the United States District Court for the Southern District of New York.

The complaint alleges that plaintiffs claims arise from the massive fraud perpetrated by Bernard L. Madoff ("Madoff') through his investment firm, Bernard L. Madoff Investment Securities LLC ("BMIS"). As the world learned on December 11, 2008, Madoff and BMIS controlled billions of dollars in investments which purportedly earned stable returns. In truth, these returns were entirely fictitious and part of the largest Ponzi scheme in history. The fraud orchestrated by Madoff and BMIS-facilitated by the wrongful conduct of defendants here-cost investors an estimated $64.8 billion based upon the reported value of thousands of BMIS client accounts as of November 30, 2008.
 
Plaintiffs invested with Madoff and BMIS indirectly through Plaza Fund, one of the many so-called "feeder funds" into Madoffs fraudulent operations. The Plaza Fund-formed on October 25, 1996, as a private open-ended investment company under the laws of the British Virgin Islands-invested millions of dollars with Madoff, all of which is now lost.
 
Notz, Stucki Management (Bermuda) Ltd. ("Notz Stucki Bermuda" or the "Investment Manager") served as the investment manager for the Plaza Fund. The most recent Investment Management Agreement is dated October 1, 2000, and effectively controlled the Plaza Fund's operations. Notz Stucki Bermuda, as Investment Manager, and its related entity, Notz, Stucki & Cie S.A., marketed the Plaza Fund to investors and purported to evaluate investments, as well as manage and oversee the Fund. In documents issued in connection with the Fund, Notz Stucki Bermuda represented that its role was "to review investment decisions . . . subject to overall supervision and control by the Board of Directors."  Importantly, Notz Stucki Bermuda appointed the Plaza Fund's Board of Directors.
 
As Investment Manager, Notz Stucki Bermuda selected and supposedly evaluated Madoff and BMIS. Notz Stucki Bermuda, however, did not undertake any evaluation, management, or oversight of Madoff and/or BMIS, or if it did undertake those functions, they were performed with gross negligence, recklessness, and/or in bad faith. Instead of safekeeping Plaintiffs' investments, Notz Stucki Bermuda simply funneled them to Madoff. Based on Madoffs fictitious profits, Notz Stucki Bermuda collected millions of dollars in fees.
 
Moreover, certain of the defendants wrongly collected tens of millions of dollars in unearned fees based on the fictitious profits. These fees were wrongly paid out of the Plaza Fund and must be returned.

If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.