Jury Backs Bayou In $13M Clawback Row With Hedge Funds

Law360, New York (May 13, 2011, 6:46 PM EDT) -- Rejecting the good faith defense put forward by investors that cashed out of Bayou Group LLC well before the $450 million Ponzi scheme's collapse, a New York federal jury on Thursday said the investors must return $13 million in principal to the bankrupted Bayou estate.

Following an eight-day trial, thejury determined that hedge funds Heritage Hedged Equity Fund LP and Redwood Growth Partners LP, investment company D. Canale & Co., and four other investors cannot keep the $13 million, rejecting claims that the investors redeemed their...
To view the full article, register now.




Case Information

Case Title

In Re: Bayou Group, LLC

Case Number



New York Southern

Nature of Suit

Bankruptcy Appeal (801)


Paul G. Gardephe

Date Filed

March 13, 2009

Law Firms

Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.