| Company: | Gabriel Capital, L.P. |
| Ticker Symbol: | GABR |
| Class Period: | Dec-12-02 to Dec-12-08 |
| Date Filed: | Dec-17-08 |
| Lead Plaintiff Deadline: | Feb-15-09 |
| Court: | Southern District of New York |
| Allegations: | |
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, common law fraud, negligent misrepresentation and breach of fiduciary duty under the laws of New York State. Defendants include Gabriel Capital, L.P., J. Ezra Merkin ("Merkin") and BDO Seidman, L.P. ("Seidman") Gabriel is an investment partnership managed by defendant Merkin, who is the founder, General Partner and Manager of Gabriel. Plaintiff and other class members are qualified investors that purchased limited partnership interests in Gabriel. Defendant Seidman is the independent auditor for Gabriel and during the Class Period issued audit reports on Gabriel's annual financial statements which were relied on by plaintiff and other limited partners of Gabriel.
This case arises from a massive fraudulent scheme perpetrated by Bernard L. Madoff ("Madoff") through his investment firm, Bernard L. Madoff Investment Securities, LLC ("BMIS"), and others. The complaint alleges that Defendants Gabriel, Merkin and Seidman recklessly or with gross negligence and/or in breach of fiduciary duties owed to plaintiff and other class members, caused and permitted at least 27% of the investment capital of Gabriel to be handed over to Madoff to be "invested" for the benefit of plaintiff and the other limited partners of Gabriel. Plaintiff's investment in Gabriel has been decimated as a direct result of: (a) defendant Merkin's abdication of his responsibilities and duties as General Partner and Manager of Gabriel and its investment funds and; (b) the failure of Gabriel's auditor Seidman, in light of "red flags" indicating a high risk to Gabriel from concentrating its investment exposure in Madoff as third-party investment manager for a substantial portion of the Partnership's assets, to perform its audits and provide its annual audit reports in conformance with generally accepted auditing standards.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
