GENERAL MEETING DRAFT - Bankier.pl

Madoff
In October 2009, the Southern District consolidated the three cases for pretrial purposes. Thereafter,
amended consolidated complaints relating to each of three investment fund groups that allegedly invested
with BMIS (the "Herald" funds, "Primeo" funds and "Thema" funds) were filed.
The amended "Herald" complaint, filed in February 2010, asserts putative class action claims on behalf of
investors who owned shares of Herald Fund SPC-Herald USA Segregated Portfolio One and/or Herald
(Lux) on December 10, 2008, or purchased shares in those funds from January 12, 2004, to December
10, 2008, and were damaged thereby. The amended complaint alleges that UniCredit S.p.A., Bank
Austria and Bank Medici, among other defendants, breached common law duties and violated U.S.
federal securities laws by, inter alia, knowingly or recklessly failing to safeguard plaintiff's investment in
the face of "red flags" concerning Madoff. Plaintiff seeks unspecified damages, punitive damages,
recoupment of fees, benefits or assets unjustly obtained from the putative class, costs and attorneys' fees
to be determined at trial, as well as an injunction preventing defendants from using fund assets to defend
the action or otherwise seeking indemnification from the funds.
The amended "Primeo" complaint, filed in February 2010, asserts putative class action claims on behalf of
investors who owned shares of Primeo Select Fund and/or Primeo Executive Fund on December 10,
2008, or purchased shares of those funds from January 12, 2004, to December 12, 2008, and were
damaged thereby. The amended complaint alleges that UniCredit S.p.A., Bank Austria, Bank Medici, BA
Worldwide, PAI and Pioneer Global Asset Management S.p.A, among other defendants, breached
common law duties and violated U.S. federal securities laws by, inter alia, misrepresenting the monitoring
that would be done of Madoff and plaintiffs' investments and disregarding "red flags" of Madoff's fraud.
Plaintiffs seek unspecified damages, recoupment of fees, benefits or assets unjustly obtained from the
putative class, interest, punitive damages, costs and attorneys' fees to be determined at trial, as well as
an injunction preventing defendants from using fund assets to defend the action or otherwise seeking
indemnification from the funds.
The amended "Thema" complaint, filed in February 2010, asserts putative class action claims on behalf of
investors who owned shares of Thema International Fund plc and/or Thema Fund on December 10, 2008,
or purchased shares in those funds from January 12, 2004, to December 14, 2008, and were damaged
thereby. The amended complaint alleges that UniCredit S.p.A., BA Worldwide and Bank Medici, among
other defendants, violated U.S. federal securities laws and committed common law torts by, inter alia,
recklessly or knowingly making or failing to prevent untrue statements of material fact and/or failing to
exercise due care in connection with plaintiff's investment. The amended complaint further alleges that
UniCredit S.p.A., BA Worldwide and Bank Medici were unjustly enriched by the receipt of monies from the
putative class. Plaintiff seeks unspecified damages (including profits that the putative class would have
earned had their money been invested prudently), interest, punitive damages, costs and attorneys' fees,
as well as an injunction preventing defendants from using fund assets to defend the action or otherwise
seeking indemnification from the funds.
These proceedings are in their initial stages. UniCredit Sp.A.. and its affiliated defendants intend to
defend these proceedings and to assert defenses against the Madoff-related claims directed at them.
2009 CONSOLIDATED REPORTS AND ACCOUNTS
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