A Luxembourg court ruled on Thursday that investors who lost money to Bernard L. Madoff through a fund set up by UBS cannot seek compensation directly from the Swiss bank, Reuters reported.
In November, private and institutional investors who lost money through the LuxAlpha fund, set up as a vehicle for wealthy investors to invest in Madoff funds, sued UBS and Ernst & Young for “seriously neglecting” their supervisory duties of the fund.
But the court rejected the demands of the investors, who wanted to file individual claims against the bank, rather than having to go through the fund’s liquidators, Reuters said.
Franc Greff, who represents clients in four of the 10 cases being reviewed, told the news service he would appeal the decision.
