Investment Firm Wins Toss Of Suit Over Madoff Losses

Law360, New York (October 22, 2010, 4:57 PM EDT) -- A federal judge has thrown out a proposed class action against an investment firm that forwarded assets to feeder funds of Bernard L. Madoff Securities LLC, saying plaintiffs failed to support claims that Family Management Corp. should have known better.

Judge Leonard B. Sand issued the ruling in the U.S. District Court for the Southern District of New York on Wednesday, dismissing in entirety the second amended complaint filed by investor David B. Newman and affiliates against Family Management and its top executives.

In the opinion,...
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