2nd Circ. Upholds Dismissal For Bayou Advisers

Law360, New York (July 15, 2009, 12:00 AM EDT) -- The U.S. Court of Appeals for the Second Circuit has affirmed a victory for investment adviser firm Hennessee Group LLC in a securities lawsuit over its involvement with the massive fraud at collapsed hedge fund Bayou Group LLC.

The appeals court panel wrote in an opinion Tuesday that appellant South Cherry LLC’s allegations that Hennessee should have known about the wrongdoing at Bayou Group were “found wanting for lack of plausible and cogent allegations of scienter.”

Hennessee attorney Bennett Falk of Bressler Amery & Ross PC...
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