Fund Managers Hit With Suit Over $32M Madoff Loss

Law360, New York (July 2, 2010, 2:26 PM EDT) -- Shareholders in a hedge fund that lost $32 million as a result of Bernard L. Madoff's notorious Ponzi scheme have filed a derivative lawsuit on behalf of the fund against its investment manager and executives, saying they should have known investing with Madoff was risky.

The plaintiffs, employee benefit funds for New Jersey carpenters, filed their suit Wednesday in the New York County Supreme Court against Meridian Diversified Fund Management LLC and 10 executives. The plaintiffs are shareholders in Meridian Diversified ERISA Fund Ltd.

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