A U.K. trial court recently handed down a decision in a suit brought by a hedge fund manager and its principal against a bank and one of its relationship managers for damages resulting from approximately £15.5 million in losses suffered in an alleged Ponzi scheme in which they invested that maintained accounts at the bank.  The plaintiffs claimed that the bank and the relationship manager, which handled several accounts used in the Ponzi scheme, were liable for negligence, deceit and other misconduct and for failing to reveal information about the accounts to the plaintiffs.  Importantly, the court’s decision in this case highlights the extent to which a bank and its employees are obligated to discover and disclose information about their customers’ accounts to hedge fund managers.  This article summarizes the factual background, legal analysis and decision in this case.