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Tremont, Ernst & Young Must Face Madoff Investment Suit

Tremont Group Holdings Inc. and Ernst & Young LLP must face an investor lawsuit over losses tied to Bernard Madoff’s fraud after the Washington state Supreme Court upheld an appeals ruling reviving the case. FutureSelect Portfolio Management Inc., which lost $195 million in Tremont’s feeder fund when Madoff’s Ponzi scheme collapsed, is entitled to try to prove its allegations, the state’s highest court ruled today. Tremont was the second-biggest feeder into Madoff’s multibillion-dollar fraud, after Fairfield Greenwich Group. FutureSelect, based in Kirkland, Washington, sued in state court in Seattle accusing Tremont of failing to detect the fraud and notify the company of risks associated with Madoff’s funds. FutureSelect invested in the funds, managed by Madoff from 1998 to 2007. More on Bloomberg here.

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