If you invested through a feeder fund, you likely trusted that the managers, auditors, and related third-party professionals were giving you truthful, complete information about the underlying investment. Frequently, the point of a feeder fund is to believe the fund conducted adequate professional due diligence before “feeding” money to a bad investment. If you later discovered that untrue or misleading statements, omissions, or unlawful conduct have caused you significant losses, you may need help from a feeder funds securities fraud lawyer to hold the responsible parties accountable.
Plaintiffs who invested substantial assets into feeder structures frequently discover that the harm was not caused by market movement but rather by professionals who failed in the most basic duties of oversight, disclosure, and verification.
Silver Law Group is a national firm handling complex litigation across the country, and our team of securities fraud class action attorneys has built a reputation for taking action against banks, accountants, and public companies whose misconduct devastated investors. We handle many types of lawsuits on a contingency fee basis, meaning we advance the cost of litigation and you pay us nothing unless we recover money for you.
Many plaintiffs first realize the danger of feeder structures only after a major loss. This is because fraudsters exploit layers of intermediaries to distance themselves from scrutiny. Feeder funds typically aggregate investor capital and direct it into a master fund. When due diligence is weak or independent review does not occur, unlawful activity may go undetected for years. Feeder fund liability often arises from:
These failures with the feeder fund expose investors to devastating losses because the professionals responsible for oversight did not act as gatekeepers. Silver Law Group investigates each party’s specific contribution to the loss, including how financial statements were prepared, how audits were conducted, and whether the fraudster concealed information that third parties had a duty to uncover.
Our lawyers can help you understand how securities fraud cases involving feeder funds differ from traditional claims. Feeder fund lawsuits frequently target public companies, auditors, and banks that misrepresented the financial health of the entities into which investors were placing their capital.
Plaintiffs may pursue claims when third parties issued untrue or misleading statements, ignored obvious irregularities, or failed to disclose information that a reasonable professional would have identified. Silver Law Group uses its national resources to examine communications, financial disclosures, and audit records across multiple layers of the feeder structure. It is important to note that these cases are typically litigated in the appropriate District Court, not necessarily the one closest to the investor.
Because our work is contingency fee-based, we take on the cost and risk of building a case that uncovers every institution that contributed to the loss.
Plaintiffs need certain evidence to establish liability in these cases. Feeder fund litigation generally requires a deep dive into fund documents, audit workpapers, compliance files, and public disclosures. The goal is to prove third parties either knew or should have known that unlawful conduct was occurring at the master fund level.
Key evidence may include risk disclosures, subscription agreements, offering materials, bank transaction records, and audit reports with inconsistencies or unexplained deviations. Silver Law Group also frequently works with financial experts who examine valuation practices, asset verifications, and the timing of disclosures.
In securities fraud cases involving feeder funds, our lawyers thoroughly analyze where omissions occurred, how information was concealed, and which institutions failed to intervene.
You deserve to be compensated for fraud that adversely affected your investments. Working with a feeder funds securities fraud lawyer gives you the opportunity to recover losses and hold powerful institutions responsible for the harm they caused. At Silver Law Group, we will review your case, identify the responsible third parties, and aggressively pursue the compensation you are entitled to.
