Austin Capital Management, Ltd. Securities & ERISA Litigation Settlement
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Welcome to the Austin Capital Management, Ltd. Settlement Website

This website has been established to provide general information related to the Austin Capital Management, Ltd., ("Austin Capital") Securities and Employee Retirement Income Security Act ("ERISA") Litigation and the resulting Settlement Fund. The capitalized terms used on this website, and not defined herein, shall have the same meanings ascribed to them in the Settlement Agreement dated April 10, 2014.

The lawsuits in this multidistrict litigation ("MDL"), which arise from the Bernard L. Madoff scandal, allege that the Defendants violated the federal and state securities laws, ERISA, and the common law. The Class Representatives invested in certain Austin Capital Funds that in turn made investments in the Rye Select Broad Market Prime Fund, a fund whose investments were managed by Madoff. As a result of Madoff's theft of the assets of the Rye Select Broad Market Prime Fund, the Austin Capital Funds lost value and the Class Representatives' investments in those Austin Capital Funds also lost value. The Class Representatives allege that the Defendants acted imprudently by allowing some of the Austin Capital Funds' assets to be invested in the Rye Select Broad Market Prime Fund, that Defendants knew or should have known of the true nature of Madoff's scheme, and that Defendants made false or misleading statements about their investment and due diligence practices.

The below Austin Capital Funds are those affected by the alleged misconduct:

-       Austin Capital All Seasons Offshore Fund

-       Austin Capital Safe Harbor ERISA Dedicated Fund

-       Austin Capital Safe Harbor Offshore Fund

-       Austin Capital Safe Harbor QP Fund

-       Austin Capital Safe Harbor Portable Alpha 1 Fund

Defendants deny all of the allegations and further deny that they did anything wrong. Defendants also deny that the Class Representatives or the Classes suffered damages or otherwise were harmed by the matters alleged in the MDL. Defendants continue to believe the claims asserted against them are without merit, and they have agreed to enter into the settlement solely to avoid the expense, distraction, time, and uncertainty associated with continuing the MDL.

On May 19, 2014, the Court preliminarily approved the Settlement and scheduled a final Fairness Hearing on September 12, 2014 to consider whether the settlement is fair, reasonable, and adequate. The Court continued the hearing to October 2, 2014 at 11:00 a.m.

The Settlement Fund consists of $6,850,000 in cash, plus any interest earned, and will be paid to the persons and employee benefit plans covered by ERISA who invested directly in the above Austin Capital Funds as of December 11, 2008.  These persons and/or ERISA Plans are known as the "Investor Class".  If you are an Investor Class member, you must complete and return the pre-printed Claim Form, Acknowledgement, Receipt and Release which you received with the Notice of Proposed Settlement of Class Action to Investor Class (the "Investor Class Notice") to be eligible for payment from the Settlement Fund.  If you invested directly in one or more of the Austin Capital Funds as of December 11, 2008 and did not receive a pre-printed Claim Form, Acknowledgement, Receipt and Release, please contact the Claims Administrator.  

If you did not invest directly in one or more Austin Capital Funds but were instead a participant and/or beneficiary of an employee benefit plan covered by ERISA that held an interest in the Austin Capital Funds as of December 11, 2008, you will also benefit but will not receive a payment directly from the Settlement Fund. These persons are known as the "Participant and Beneficiary Class". Instead, the employee benefit plan of which you are a participant or beneficiary will receive the payment. Accordingly, you do not need to take any action to benefit from the settlement.  ERISA Plans that have been identified as having participants who are part of the Participant and Beneficiary Class are required to disseminate the Notice of Proposed Settlement of Class Action to Participant and Beneficiary Class (the "Participant and Beneficiary Notice") to its underlying participants and beneficiaries using whatever method they deem most practicable.  If you have any questions regarding whether you are a participant or beneficiary of a particular employee benefit plan (such as a pension fund), you should contact your plan or fund office directly. 

Excluded from the Investor Class are Defendants and those Persons who timely and validly request exclusion from the Investor Class pursuant to the Investor Class Notice.  If you are a member of the Participant and Beneficiary Class, you do not have the option to exclude yourself from the Settlement.

Although the information on this website is intended to assist you, it does not replace the information contained in the Investor Class Notice, the Participant and Beneficiary Class Notice or the Settlement Agreement, all of which can be found on the Case Documents tab and downloaded from this website. We recommend that you read the Notices and other relevant case documents carefully to understand your legal rights and options.