MassMutual, Fairfield in Madoff suits Dec 23, 2008
MassMutual, Fairfield in Madoff suits
Reuters / December 23, 2008
NEW YORK - Investors have sued Fairfield Greenwich Group hedge fund and Massachusetts Mutual Life Insurance Co., the latest firms to face lawsuits for entrusting money to investment manager Bernard L. Madoff, accused of orchestrating a $50 billion.
Fairfield, which had $7.5 billion invested with Madoff, was sued in New York State Supreme Court on Friday by two investors who claimed the group and its executives "failed to manage properly their investments and to carry out necessary due diligence that would have uncovered the massive Ponzi scheme."
Madoff, 70, was arrested and charged on Dec. 11 with securities fraud. Prosecutors say he confessed to running up $50 billion in losses through his Bernard L. Madoff Investment Securities firm in what would be one of Wall Street's biggest frauds.
Representatives of the hedge fund could not immediately be reached for comment.
In a separate lawsuit yesterday, two investors sued in US District Court in the Southern District of New York to recover losses from MassMutual.
The investors claimed the defendants "breached their fiduciary duties by failing to conduct adequate due diligence and/or ignoring numerous red flags" about Madoff's scheme.
MassMutual spokesman Mark Cybulski said the firm believes the claims are without merit.
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