Skadden secured the dismissal of another high-profile lawsuit against Tremont Group Holdings, Inc. in ongoing litigation related to the Bernard Madoff scandal. The plaintiff, an investor in a Tremont-managed hedge fund with exposure to Madoff, alleged that, among other things, Tremont fraudulently misrepresented the fund’s operations and the due diligence it conducted on Madoff.
On April 1, New York Supreme Court Justice Richard Lowe III dismissed these claims, finding the plaintiff’s allegations conclusory and otherwise barred by an exculpation clause in the fund’s limited partnership agreement and by Tremont’s earlier settlement of a federal derivative lawsuit making similar allegations.