Investment Advisor Freed Of Bayou-Related Claims

Law360, New York (August 3, 2007, 12:00 AM EDT) -- An investment advisor firm has won dismissal from a wide-ranging securities lawsuit stemming from the massive fraud at collapsed hedge fund Bayou Group LLC.

U.S. District Judge Colleen McMahon on Tuesday granted Hennessee Group LLC’s motion to dismiss claims brought by South Cherry LLC, which invested $1.5 million in one of Bayou Group’s affiliates, Bayou Accredited LLC, from March 2003 to October 2004.

The investment came at the recommendation of Hennessee, an investment advisor specializing in hedge funds.

South Cherry claimed that Hennessee had said its...
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