Wolf Haldenstein Adler Freeman & Herz LLP filed a class action lawsuit in the United States District Court, Southern District of New York, against defendants Beacon Associates Management Corp. ("Beacon Associates"), Joel Danziger, Esq. ("Danziger"), Harris Markhoff, Esq. ("Markhoff"), Ivy Asset Management Corp. ("Ivy Asset Management"), the Bank of New York Mellon Corporation ("BONY"), Friedberg Smith & Co., P.C. ("Friedberg Smith") and John Does 1-100 (collectively, the "Defendants"), on behalf of all persons, other than Defendants, who invested in Beacon Associates LLC I (the "Fund") from August 9, 2004 until the present (the "Class Period"), and derivatively on behalf of the nominal defendant, Beacon Associates LLC I, 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 Cacoulidis v. Beacon Associates Management Corp., et al., 09 civ. 00777. 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 Beacon Associates, the Managing Member of the Fund, concentrated more than half of the Fund's investment capital with entities managed by Bernard Madoff ("Madoff") or Madoff-related entities. Investors who entrusted their savings to Beacon Associates 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, and proximately caused millions of dollars in losses. Defendants either knew or should have known that the Fund's assets were employed as part of a massive Ponzi scheme orchestrated by Madoff. Defendants ignored numerous red flags, including the abnormally high and stable positive investment results reportedly achieved by Madoff regardless of market conditions; inconsistencies between Bernard L. Madoff Investment Securities, LLC's ("BMIS") publicly available financial information concerning its assets and the purported amounts that Madoff managed for clients; and the fact that BMIS was audited by a small, obscure accounting firm.

Additionally, Defendants Beacon Associates, Danziger and Markhoff issued an Offering Memorandum that was false and misleading because it falsely stated that the Fund's assets would be invested in a number of investment vehicles, including a "Large Cap Strategy adopted by Beacon Associates itself, when in reality, unbeknownst to investors, the vast majority of the assets in the Fund were invested in Madoff-controlled entities. The Offering Memorandum also falsely stated that Beacon Associates would monitor the Fund's performance as well as the performance of each third party manager of the Fund's assets, to ensure that they adhered to their stated investment objectives. Plaintiffs allege that Defendants Beacon Associates, Danziger, Markhoff, and Ivy Asset Management, with no or inadequate due diligence or oversight, abdicated their responsibilities and entrusted the Fund's assets to Madoff-run investment vehicles. Plaintiffs further allege that Defendant Friedberg Smith failed to conduct a proper audit of the Fund's financial statements.