Hedge Fund Sues Own Auditors Over Madoff Losses

Law360, New York (February 4, 2009, 12:00 AM EST) -- A hedge fund that placed all of its $280 million in holdings in the alleged $50 billion Ponzi scheme operated by Bernard L. Madoff's investment firm has sued its own accountants for failing to conduct audits that would have detected the fraud.

In a complaint filed Jan. 30 in Connecticut Superior Court of Fairfield County, the Maxam Absolute Return Fund, a fund operated by investment firm Maxam Capital Management, claims its auditors Goldstein Golub Kessler LLP and McGladrey & Pullen LLP were professionally negligent and breached...
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