Investors Sue Madoff Feeder Funds For $3.5B

Law360, New York (June 11, 2009, 12:00 AM EDT) -- Investors in two Bernard L. Madoff feeder funds have filed a putative class action against the disgraced financier and the funds' manager in a bid to recover $3.5 billion allegedly lost in Madoff's enormous Ponzi scheme.

In a complaint filed Wednesday in the U.S. District Court for the Southern District of New York, the investors accused British Virgin Islands funds Kingate Global Fund Ltd. and Kingate Euro Fund Ltd. of “reckless and grossly negligent” conduct that facilitated Madoff's massive fraud.

The funds, established by Italian moneymaker...
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