Luxembourg Court Rejects Lawsuit Brought by Investors in Defunct Luxembourg Hedge Fund LuxAlpha SICAV Against UBS and Ernst & Young in Connection with Madoff Scandal; the Hedge Fund Law Report Offers Exclusive English-Language Translation of Court Opinion

UBS Luxembourg was the primary custodian of Access International Advisors LLC’s LuxAlpha Sicav-American Selection fund (LuxAlpha SICAV), which was closed by the Luxembourg regulator, Commission de Surveillance du Secteur Financier (CSSF), because of investments in the Ponzi scheme operated by Bernard Madoff.  Investors seeking to recoup their losses in LuxAlpha SICAV, which once had assets of $1.4 billion, brought several lawsuits against UBS.  Most recently, on March 4, 2010, a Luxembourg court rejected efforts by certain investors in the now defunct LuxAlpha SICAV to pursue a direct cause of action against UBS AG and affiliated entities, and against auditor Ernst & Young, in connection with LuxAlpha SICAV’s Madoff-related losses.  Specifically, the court found that the investors have to pursue their claims through the liquidator of their fund.  This week’s issue of the Hedge Fund Law Report includes the only available English-language translation of that opinion.  Our translation is based on the official French-language opinion, which was made available to the Hedge Fund Law Report on Friday, March 5, 2010.

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