A class action has been filed against Bayou Hedge Fund Entities and its officers and directors by stockholders who purchased the company's common stock between December 31, 1996 and August 25, 2005. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.

According to a press release dated November 23, 2005, a complaint was filed concerning the recent collapse of the family of hedge funds managed by Bayou Management LLC of Stamford, Connecticut. Specifically, the complaint alleges that the Bayou Hedge Funds have, almost since their inception in or about 1996, essentially operated as a massive financial sham and Ponzi scheme in which defendants, two of Bayou's principals and others, fraudulently lured Class member investors to invest approximately $450 million in the Bayou Hedge Funds, and then unlawfully pilfered and squandered hundreds of millions of those investment proceeds. Defendant Citibank, N.A. is alleged to have facilitated the scheme by allowing defendant, one of Bayou's principals, to transfer at least some $120 million of the Class member fiduciary funds Bayou had under management to one or more of his own personal bank accounts in Germany and elsewhere.

Further, defendants, two of Hennessee Group LLC's principals and Sterling Stamos Capital Management, L.P., are alleged to have facilitated the fraud by failing to conduct proper due diligence of the Bayou Hedge Funds prior to recommending those investments to investors, and by failing to properly monitor those investments. Since the time that the truth about the Bayou fraud began to be revealed beginning August 25, 2005, the two Bayou's principals have pleaded guilty to multiple criminal charges, and the Bayou Hedge Funds have collapsed.

The lawsuit names as defendants Bayou Super Fund, LLC, Bayou No Leverage Fund, LLC, Bayou Affiliates Fund, LLC, Bayou Accredited Fund, LLC, Bayou Offshore Fund, LLC, Bayou Fund, LLC, and other Bayou-related persons and entities; Bayou's principals; Bayou's banker, Citibank, N.A.; and hedge fund consultants Hennessee Group LLC, two of its principals, and Sterling Stamos Capital Management, L.P.

If you bought Bayou Hedge Fund Entities securities between December 31, 1996 and August 25, 2005, inclusive, and would like to obtain information about the Bayou Hedge Fund Entities lawsuit, then you are invited to call (866) 467-1400 to speak with an attorney.