[3] Anwar v. Fairfield Greenwich (SDNY, 2010) is the major case relating to fund administrator liability for failure to handle its NAV-related obligations properly.
[4][5] The case was a consolidated proceeding against defendants that provided auditing and hedge fund administration and management services to investor plaintiffs whose investments were lost in the Bernard Madoff Ponzi scheme.
[4][5] Investors accused the defendants of collecting hundreds of millions of dollars in fees for their services, while ignoring warning signs that should have alerted them to the existence of Madoff’s fraud.
[6] In addition, the court held that the Administrator sending NAV statements to interested investor parties was sufficient to allege a "linking" requirement.
The number of shares that the Plaintiffs received in exchange for their investment amounts depended on [the Administrators'] NAV calculations.