Berger & Montague, P.C. Client Files Class Action Against Bayou Hedge Fund Entities, Citibank, Hennessee Group, Sterling Stamos Capital Manageme

24 November 2005

On November 17, 2005, an investor
represented by the law firm Berger & Montague, P.C.
(http://www.bergermontague.com) and other investors filed the first class
action suit concerning the recent collapse of the family of hedge funds
managed by Bayou Management LLC of Stamford, Connecticut. 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, Samuel Israel, III and Daniel E. Marino; Bayou's
banker, Citibank, N.A.; and hedge fund consultants Hennessee Group LLC, its
principals E. Lee Hennessee and Charles J. Gradante, and Sterling Stamos
Capital Management, L.P. The lawsuit is filed on behalf of persons who,
during the Class Period December 31, 1996 through August 25, 2005, invested
funds or maintained investments in the Bayou Hedge Funds, and suffered
damages.

Plaintiffs allege 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 Israel, Marino 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 Israel 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. Defendants Hennessee Group
LLC, its managing principals.

E. Lee Hennessee and Charles J. Gradante, 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, defendants Israel and Marino have
pleaded guilty to multiple criminal charges, and the Bayou Hedge Funds have
collapsed. This case is pending in the United States District Court for the
District of Connecticut, Civil Action No. 3:05-cv-01762-JBA. If you
purchased interests in the Bayou Hedge Funds during the Class Period, you
may qualify for membership in the proposed Class. A copy of the complaint
can be viewed electronically at www.bergermontague.com.

The law firm of Berger & Montague, P.C. consists of some 65 attorneys
concentrating in complex civil litigation, including the representation of
institutional and other investors in securities and other investor
protection litigation. Among the Firm's many successful representations,
Berger & Montague has represented shareholders in securities cases
involving Sunbeam, Rite Aid, Waste Management, Drexel Burnham Lambert and
numerous other well-known companies. The Connecticut law firm of Koskoff
Koskoff & Bieder, P.C. is also serving as plaintiffs' counsel in the Bayou
class action.

For more information about this class action, please contact:
Merrill G. Davidoff, Esq.
Lawrence J. Lederer, Esq.
Lane L. Vines, Esq.
Berger & Montague, P.C.
1622 Locust Street
Philadelphia, PA 19103
Phone: 800-424-6690 or 215-875-3000
Fax: 215-875-4604
e-mail: Email Contact
SOURCE: Berger & Montague, P.C.