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Torts
Fraud
Aiding and Abetting Breach of Fiduciary Duty

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)

Jonathan A. Harris

Andrew A. Esbenshade

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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