Maxam hedge fund sues auditors over Madoff losses
Maxam hedge fund sues auditors over Madoff losses
NEW YORK (Reuters) - Maxam Absolute Return Fund LP, a hedge fund, on Friday said it filed a lawsuit against auditors Goldstein Golub Kessler LLP and McGladrey & Pullen LLP to recover losses suffered by its investors in investments held by Bernard L. Madoff Investment Securities LLC.
Maxam, an investment adviser based in Darien, Connecticut, relied on the auditors for their expertise in examining Madoff's firm, according to the lawsuit filed in Connecticut Superior Court in Fairfield County.
The lawsuit, though, said the auditors issued "unqualified" opinions for 2006 and 2007 audits that stated Maxam's financial statements presented its true financial position.
Maxam was one of many funds that invested with Madoff, who in December was arrested for allegedly running a $50 billion Ponzi scheme. Maxam contends the auditors were negligent when performing Maxam's 2006 and 2007 audits.
"MAXAM intends to pursue its legal rights to ensure that proper restitution is made to its investors," Jonathan Cogan, a partner at Kobre & Kim LLP and counsel to MAXAM, said in a statement.
Officials from the two auditing firms were not immediately available for comment.
(Reporting by Joseph A. Giannone; Editing by Gary Hill)
Votes:3
Comments: 0