SEATTLE – Hagens Berman Sobol Shapiro LLP yesterday filed a class-action lawsuit in the United States District Court for the Central District of California on behalf of individuals and groups that invested capital in Bernard Madoff Investment Securities (BMIS) through Stanley Chais (Chais), or the Brighton Company, one of the many alleged feeder funds by Chais.

The lawsuit claims Bernard Madoff and other defendants engaged in a Ponzi scheme, defrauding investors of billions of dollars. The suit alleges defendants fraudulently paid returns to certain investors out of principle received from others. The lawsuit claims the result is $50 billion in liabilities and fraud of unprecedented levels.

HBSS is representing investors and groups that invested capital through Chais or the Brighton Company, one of the many alleged feeder funds that directed investor capital to Bernard Madoff and BMIS. HBSS is representing investors against Chais, Brighton, Madoff and BMIS through this class action while also exploring other remedies for investors.

Chais allegedly managed several investment groups, the monies from which were given to Madoff and BMIS. The lawsuit claims all defendants contributed to the false, misleading, unlawful, unfair and fraudulent acts and practices associated with the Ponzi scheme.

The firm is also investigating the actions of other feeder firms on behalf of investors.

The lawsuit comes on the heels of Madoff's arrest and announcement to employees and family that he was 'finished.' He stated 'it's all just one big lie' and that the business was 'basically, a giant Ponzi scheme.' He also affirmed that BMIS was insolvent and had been for years. Investors around the country were shocked late last week as many learned their entire investment was gone.

If you wish to join this suit, discuss this action, or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Steve Berman, of Hagens Berman at (206) 623-7292 or Reed Kathrein at (510) 725-3000 or via e-mail [email protected]. 

Hagens Berman Sobol Shapiro, a law firm with offices in Seattle, San Francisco, Los Angeles, Boston, Chicago and Phoenix, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Hagens Berman website has more information about the firm.

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About Hagens Berman
Hagens Berman is headquartered in Seattle, Washington with offices in 10 cities. The Firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the Firm and its successes can be found at www.hbsslaw.com. Read the Firm’s Securities Newsletter, and visit the blog. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
 
Contact:
Reed Kathrein, (510) 725-3000