Wolf Haldenstein Adler Freeman & Herz LLP Commences Class Action Lawsuit on Behalf of FM Low Volatility Fund, L.P. Investors

NEW YORK--(BUSINESS WIRE)--Wolf Haldenstein Adler Freeman & Herz LLP filed a class action lawsuit in the United States District Court, Southern District of New York, against defendants Family Management Corporation (“FMC”), Seymour W. Zises (“Zises”), Andrea L. Tessler (“Tessler”), Andover Associates LLC I (“Andover”), Beacon Associates LLC I (“Beacon”), Beacon Associates Management Corp., Beacon/Andover Group, Maxam Absolute Return Fund, LP (“Maxam”), Maxam Capital Management LLC, Fulvio & Associates, LLP, and John Does 1-100 (collectively, the “Defendants”), on behalf of all persons, other than Defendants, who invested in the FM Low Volatility Fund, L.P. (the “Fund”) from April 8, 2008 until the present (the “Class Period”), and derivatively on behalf of the nominal defendant, FM Low Volatility Fund, L.P., to recover damages caused by Defendants’ violations of the federal securities laws and common law claims, including breach of fiduciary duties.

The case name is styled Newman v. Family Management Corporation, et al., 08 civ. 11215. A copy of the complaint filed in this action is available from the Court, or can be viewed on the Wolf Haldenstein Adler Freeman & Herz LLP website at www.whafh.com.

The Complaint asserts that during the Class Period, unbeknownst to investors, Defendant FMC, general partner of the Fund, concentrated more than half of the Fund’s investment capital with at least three funds of funds (“FOFs”) -- Andover, Beacon and Maxam -- that, in turn, all heavily invested in entities managed by Bernard Madoff (“Madoff”) or Madoff-related entities. Investors who entrusted their savings to FMC suffered millions in damages as a result of Madoff’s fraudulent scheme.

This Complaint alleges that Defendants failed to perform the necessary due diligence that they were being compensated to perform as investment advisors, managers and fiduciaries. Defendants either knew or should have known that the Fund’s assets were employed as part of a massive Ponzi scheme orchestrated by Madoff, or that Madoff otherwise reported purported results that would have been impossible to achieve under his split-strike conversion strategy, and took no steps in a good faith effort to prevent or remedy that situation, proximately causing millions of dollars of losses.

Additionally, Defendants FMC, Zises and Tessler issued an Offering Memorandum that was false and misleading because it falsely stated that FMC would not invest more than 35% of the Fund’s net asset value with any one investment vehicle, but, in reality, more than 60% of the Fund’s assets were funneled through three FOFs – Defendants Andover, Beacon and Maxam – and invested in Madoff-related entities. The Offering Memorandum also falsely stated that FMC would (i) endeavor to verify the integrity of each manager of a FOF in which the Fund was invested; (ii) attempt to monitor the performance of each manager; and (iii) request detailed information regarding the historical performance and investment strategy of each of the selected investments for the Fund. Plaintiffs allege that Defendants, with no or inadequate due diligence or oversight, abdicated their responsibilities and entrusted the Fund’s assets to Madoff-run investment vehicles. Plaintiffs have alleged claims on behalf of the class for violations of Sections 10(b) and 20(a) of the Exchange Act, Rule 10b-5, as well as common law fraud, negligent misrepresentation and breach of fiduciary duty claims. Plaintiffs are also suing derivatively on behalf of the Fund for breach of fiduciary duty, gross negligence and mismanagement, and common law fraud.

If you invested in the FM Low Volatility Fund, L.P. during the Class Period, you may request that the Court appoint you as lead plaintiff by February 23, 2009.

A “lead plaintiff” is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiffs. Your ability to share in any recovery, however, is not affected by your decision on whether or not to serve as a lead plaintiff. You may retain Wolf Haldenstein, or other counsel of your choice, to serve as your counsel in this action.

Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has approximately 70 attorneys in various practice areas; and offices in Chicago, New York City, San Diego, and West Palm Beach. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation. Please visit the Wolf Haldenstein website (http://www.whafh.com) for more information about the firm.

If you wish to discuss this matter with us, or have any questions concerning your rights and interests with regard to this matter, please contact:

Gregory Mark Nespole
Demet Basar
Gustavo Bruckner
Stacey T. Kelly
Derek Behnke
Wolf Haldenstein Adler Freeman
& Herz LLP
270 Madison Avenue
New York, New York 10016
Phone Number:			(800) 575-0735
			(212) 545-4600
Email:	Nespole@whafh.com
	Basar@whafh.com
	Bruckner@whafh.com
	Skelly@whafh.com
	Classmember@whafh.com
Website:	http://www.whafh.com