Hedge Fund Focus

Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit Against Austin Capital Management Ltd.

SAN DIEGO–(BUSINESS WIRE)–Coughlin Stoia Geller Rudman & Robbins LLP (“Coughlin Stoia”) (http://www.csgrr.com/cases/austincapital/) today announced that a class action has been commenced on behalf of institutional investors in the United States District Court for the Southern District of New York on behalf of investors in Austin Capital Management Ltd. (“Austin Capital”) hedge funds during the period between January 2, 2005 and December 11, 2008 (the “Class Period”), seeking to recover losses resulting from Austin Capital’s placement of significant amounts of investor money into funds managed by Bernard Lawrence Madoff (“Madoff”) and his firm. The action includes a sub-class of those employee benefit plans which invested with Austin Capital during the Class Period, asserting claims under the Employee Retirement Income Security Act of 1974 (“ERISA”) for breach of fiduciary duty.

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiffs’ counsel, Darren Robbins of Coughlin Stoia at 800/449-4900 or 619/231-1058, or via e-mail at djr@csgrr.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.csgrr.com/cases/austincapital/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint charges Austin Capital, its investment managers and its outside auditors with violations of the Securities Exchange Act of 1934 and ERISA. Austin Capital is a limited partnership that oversees hedge fund investment portfolios for individual and institutional clients.

The complaint alleges that Austin Capital placed significant amounts of investor money into funds managed by Madoff and his firm. Madoff has now been charged with running what may be the largest Ponzi scheme ever. Unbeknownst to investors in its funds, Austin Capital had invested approximately 7.5% of its funds in Madoff-managed investments. This was contrary to the duties Austin Capital had to its investors of good faith and fair dealing and contrary to the representations Austin Capital had made regarding its processes for selecting fund managers. As a result of defendants’ breaches and false statements, Austin Capital investors made additional investments in Austin Capital and/or held interests they would have redeemed.
Plaintiffs seek to recover damages on behalf of all investors in Austin Capital hedge funds during the Class Period. The plaintiffs are represented by Coughlin Stoia, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Coughlin Stoia, a 190-lawyer firm with offices in San Diego, San Francisco, Los Angeles, New York, Boca Raton, Washington, D.C., Philadelphia and Atlanta, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Coughlin Stoia Web site (http://www.csgrr.com) has more information about the firm.

Contacts
Coughlin Stoia Geller Rudman & Robbins LLP
Darren Robbins, 800/449-4900 or 619/231-1058
djr@csgrr.com

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