Tremont Group Wins Affirmance of Madoff-Related Dismissal

On behalf of Tremont Group Holdings, Skadden secured the affirmance in full of a September 2016 decision dismissing, with prejudice, all of the plaintiffs’ claims arising from Tremont’s management of two offshore hedge funds that allegedly lost over $1 billion that had been invested with Bernard Madoff. On August 17, the U.S. Court of Appeals for the Second Circuit affirmed the lower court’s conclusions that some of the claims were barred by the Securities Litigation Uniform Standards Act (SLUSA) and that other claims were barred under the “reflective loss rule” applicable under Bermuda and British Virgin Islands law. The Second Circuit also agreed with the lower court that the plaintiffs had waived any argument that SLUSA was not applicable to their foreign law claims because the plaintiffs did not timely present that argument in response to defendants’ first motion to dismiss.