Hedge fund operator J. Ezra Merkin has moved to dismiss a damages suit brought by the New York attorney general to recover an alleged $2.4 billion that was lost when he turned over his clients’ money to Bernard L. Madoff to handle without telling the investors.

In the motion to dismiss, Merkin challenged the suit’s assumption that he did not provide adequate disclosure that he was funneling the money to Madoff. The offering documents for the Ascot, Ariel and Gabriel funds, according to the motion, all advised investors the money could be invested with outside managers without their “notice” or “consent.” Moreover, the motion contended that all of Merkin’s clients were “sophisticated” investors who had placed at least $5 million in his funds.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Advance® Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]