Lead Counsel, Lowey Dannenberg, Announces $219 Million Dollar Recovery in Ivy Asset Feeder Fund Case


Lead Counsel, Lowey Dannenberg, Announces $219 Million Dollar Recovery in Ivy Asset Feeder Fund Cases

WHITE PLAINS, N.Y.--(BUSINESS WIRE)-- Today, Lowey Dannenberg Cohen & Hart announced the settlement of the Madoff Feeder Fund Litigation involving Ivy Asset Management for $219 million. Preliminary approval will be sought in the United States District Court for the Southern District of New York for this resolution of the cases concerning investments with Bernard L. Madoff Investment Securities through Beacon Associates, the Income Plus Investment Fund, Andover Associates, and investments made pursuant to the advice of J.P. Jeanneret Associates, Inc.

The proposed Settlement represents the culmination of several lawsuits brought by the Settling Plaintiffs, including the United States Secretary of Labor and the New York Attorney General, against the Settling Defendants, including the In re Beacon Assoc. Litig., 09 Civ. 0777 (LBS)(AJP) (S.D.N.Y.), In re J.P. Jeanneret Assoc. Inc., 09 Civ. 3907 (CM) (AJP) (S.D.N.Y.), and Board of Trustees of the Buffalo Laborers Security Fund, Welfare Fund and Welfare Staff Fund v. J.P. Jeanneret Associates, Inc., et al., 09 Civ. 8362 (LBS) (AJP) (S.D.N.Y.) class actions, as well as shareholder derivative suits on behalf of certain of the Settling Funds. Plaintiffs in these cases asserted claims under the federal securities laws, state laws and ERISA.

Lowey Dannenberg Cohen & Hart, P.C. was Court-appointed Lead Counsel and in that capacity worked to bring all of the parties together to work on resolution for the benefit of these investors. The firm has served as Lead Class Counsel for the Beacon Classes in In re Beacon, and Lead Securities Counsel for the Direct and Income Plus Classes and Derivative Counsel in In re J.P. Jeanneret. Lowey Dannenberg served as Court-appointed Liaison Counsel along with the United States Department of Labor in the actions. As Liaison Counsel, the firm coordinated the private and regulatory actions and led the Settlement negotiations with the Settling Defendants.

Pursuant to the terms of the proposed Settlement, the parties agreed to a Settlement Amount of $219,857,694 (Two Hundred Nineteen Million Eight Hundred Fifty Seven Thousand Six Hundred Ninety Four Dollars), consisting of (a) a cash settlement fund of $216,500,000 (Two Hundred Sixteen Million Five Hundred Thousand Dollars), and (b) additional value of $3,357,694 (Three Million Three Hundred Fifty Seven Thousand Six Hundred Ninety Four Dollars) based on claims to management fees which the Beacon Defendants agreed to waive, plus any interest that may accrue thereon. The proposed Settlement provides for payments to the Settlement Class Members who file a Proof of Claim, through a plan of allocation.

Upon preliminary approval, the Court will schedule a fairness hearing at which it will consider the Settling Plaintiffs' motions for final approval of the Settlement, for certification of settlement classes, for approval of a proposed plan of allocation, and for an award of attorneys' fees and costs. More information about the proposed Settlement is available by calling Barbara Hart, Esq. toll-free at 1-877-777-3581, or by sending an e-mail to bhart@lowey.com. Please do not contact the Court with any questions relating to this Settlement. Any and all questions should be directed to Barbara Hart at 1-877-777-3581.

Lowey Dannenberg Cohen & Hart, P.C.
Barbara Hart, Esq., 1-877-777-3581

KEYWORDS: United States North America New York


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