Motion to Dismiss Denied in Beacon Intervention Litigation
Case Abstract
Lowey attorneys Barbara Hart and Tom Skelton represent intervenors who are challenging under ERISA the use of a reserve out of the remaining assets of the Beacon Fund to pay certain expenses, including legal expenses related to the defense of actions relating to the Bernard Madoff Ponzi scheme. On December 14, 2009, after oral argument by Mr. Skelton, the Court denied defendants’ motion to dismiss the complaint, holding that indemnification and advancement provisions were unenforceable at this state of the litigation. Rounds v. Beacon Associates Management Corp., 2009 WL 4857622 (S.D.N.Y. Dec. 14, 2009).
Client
James Rounds and Lyle D. Fassett, Trustees of the Plumbers Local 112 Health Fund; Patrick Carroll and Timothy Rice, Trustees of the Local 73 Retirement Fund and U.A. of Journeymen & Apprentices Local 73 Fund, and participant in the Local 73 Funds, Timothy Rice as a Trustee of the Board of Trustees of the Local 73 Retirement Fund and U.A. of Journeymen & Apprentices Local 73 Fund; Greg Lancette, Brad Ward and Bryan Allen, Trustees of the Plumbers & Steamfitters Local 267 Pension Fund and Plumbers & Steamfitters Local 267 Insurance Fund
Case Name
James Rounds et al. v. Beacon Associates Management Corp. v. Beacon Associates LLC I, Civ. Act. No. 09-cv-6910 (S.D.N.Y.)
Current Status
On Dec. 14, 2009, Hon. Leonard B. Sand denied defendants' Motion to Dismiss.
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