Duncan Living Trust and Scott Schneider, individually and on behalf of all others similarly situated v. O'Connor Davies Munns and Dobbins LLP, and Does 1 through 10
Published: Feb. 27, 2016 | Result Date: Feb. 3, 2016 | Filing Date: Jan. 1, 1900 |Case number: BC494236 Settlement – $3,500,000
Court
L.A. Superior Central
Attorneys
Plaintiff
Julia J. Bredrup
(Boies, Schiller & Flexner LLP)
Robyn C. Crowther
(Steptoe & Johnson LLP)
Defendant
Spencer J. Davidson
(Wilson, Elser, Moskowitz, Edelman & Dicker LLP)
David S. Eisen
(Wilson, Elser, Moskowitz, Edelman & Dicker LLP)
Facts
Plaintiffs Duncan Living Trust and Scott Schneider are investors who sued defendant O'Connor Davies Munns and Dobbins LLP, an auditing firm, relating to their investment in the TS Multi-Strategy Fund.
Contentions
PLAINTIFFS' CONTENTIONS:
Plaintiffs contended that several of the 25 sub-funds from the TS Fund were actually Ponzi schemes. They claimed that they based their investment decision relating to the TS Fund based on defendant's independent auditors report, which included material misrepresentations and/or material omissions of fact. Consequently, plaintiffs claimed they lost $40 million. They brought claims for fraud, aiding and abetting fraud, aiding and abetting breach of fiduciary duty, and negligent misrepresentation.
Result
Defendant settled with plaintiffs for $3.5 million. Individual class awards will vary between $2,000 and $190,000, depending on the investor.
Other Information
FILING DATE: Oct. 19, 2012.
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