Starlight/Harb Levy Settlement 
Class Action Lawsuit

Welcome to the Starlight/Harb Levy Settlement Website

This website provides a summary of information presented in more detail in the Notice of Preliminary Approval of Class Action (“Notice”).  The content on this website incorporates, by reference, the definitions in the Stipulation of Settlement with Defendant Harb, Levy & Weiland LLP dated April 26, 2011 (“Settlement Agreement”), and all capitalized terms used, but not defined herein, shall have the same meanings as in the Settlement Agreement. Since this is just a summary, you should read the full Notice for additional details. 

YOU ARE A CLASS MEMBER AND MAY BE ELIGIBLE TO SHARE IN THE SETTLEMENT FUND IF YOU MEET THE FOLLOWING DESCRIPTION:  “ALL PERSONS OR ENTITIES WHICH OWNED ANY INTEREST IN, OR UNITS OF PARTNERSHIP INTERESTS IN, STARLIGHT, L.P. (AND ITS PREDECESSORS IN INTEREST AND FORMER NAMES, INCLUDING, BUT NOT LIMITED TO, ROTHSCHILD FAMILY PARTNERSHIP), INCLUDING ALL LIMITED AND GENERAL PARTNERS, AS OF DECEMBER 10, 2008; EXCEPT THE CLASS MEMBERS SHALL NOT INCLUDE ANY LIMITED PARTNER WHO RECEIVED A PROFIT FROM HIS, HER OR ITS INVESTMENT IN STARLIGHT.  FOR PURPOSES OF THIS PARAGRAPH, AN ENTITY OR PERSON SHALL BE DEEMED TO HAVE RECEIVED A PROFIT IF HIS, HER OR ITS TOTAL WITHDRAWALS AND DISBURSEMENTS FROM STARLIGHT EXCEEDED HIS, HER OR ITS TOTAL DEPOSITS AND CONTRIBUTIONS TO STARLIGHT.  IN THE EVENT THAT TWO OR MORE CLASS MEMBERS HAVE IDENTICAL BENEFICIAL OWNERSHIP, FOR PURPOSES OF THE SETTLEMENT SUCH CLASS MEMBERS SHALL BE DEEMED TO BE ONE CLASS MEMBER."

IMPORTANT DATES & DEADLINES 

WHAT THIS CASE IS ABOUT

Two Starlight limited partners, Joan Herron, Trustee of John M. Kokkins Trust FBO Joan K. Herron, and Kim Rosen (“Plaintiffs” or “Class Representatives”), allege that Starlight, L.P. (“Starlight” or “the Fund”) a California limited partnership formed for the purpose of placing assets for investment with third-party investment managers, deposited millions of dollars of the Fund’s assets with Bernard L. Madoff (“Madoff”) through his investment firm, Bernard L. Madoff Investment Securities, LLC.  In December 2008, it was revealed that Madoff ran a Ponzi scheme.  Plaintiffs allege that this resulted in the total loss of their investments and the destruction of the Fund’s value. 

Plaintiffs allege that Harb, Levy & Weiland, LLP (“Harb Levy”) is a public accounting firm retained by Starlight and its limited partners to audit the Fund's financial statements, and that Harb Levy breached its professional duties to Starlight’s limited partners and Starlight itself by failing to audit Starlight’s financial statements in accordance with U.S. Generally Accepted Auditing Standards.  Plaintiffs further allege that Harb Levy breached the engagement contracts they entered into to perform Starlight’s financial audits.

Plaintiffs assert class action and derivative claims and seek monetary damages for themselves and for all other current and former Starlight limited partners who were affected by Harb Levy’s alleged negligence and breaches of contract, and for Starlight itself.  Harb Levy denies Plaintiffs’ allegations, and contends that neither they nor anybody else is entitled to any relief.  The Court has not made any ultimate determination about whose position is correct.

The action also asserts claims against Starlight’s general partner, Lark Creek Investment Management Co., and Mr. Ken Kreger, the president of Lark Creek.  Those asserted claims are not affected by the proposed classwide settlement with Harb Levy, and remain pending.

THE SETTLEMENT BENEFITS

The proposed settlement is with defendant Harb Levy only.  In exchange for the release of all class and derivative claims, Harb Levy has agreed to pay the sum of $3.6 million (the “Settlement Fund”). The amount of the Settlement Fund may be reduced, as set forth in the Settlement Agreement with Defendant Harb, Levy & Weiland LLP. The Court has preliminarily determined that the proposed classwide settlement with Harb Levy falls within the range of settlement terms that the Court could approve at the final approval hearing as fair, adequate and reasonable for the Class.

THE COURT’S SETTLEMENT FAIRNESS HEARING

The Final Approval Hearing will be held on October 7, 2011 at 9:30 a.m. (rescheduled hearing date), before the Honorable Richard A. Kramer Judge in Department 304 of the San Francisco Superior Court located at 400 McAllister Street, San Francisco, California 94102.

AS A CLASS MEMBER YOU HAVE THE FOLLOWING OPTIONS

EXCLUDE YOURSELF FROM THE CLASS

To exclude yourself from the Class, you must send a letter by mail to all of the following in writing:

Your letter must state that you want to be excluded from the Class in the Starlight/Harb Levy Settlement L.P., Settlement, Case No. CGC-10-496342, and must include your name, telephone number, and your signature. Your  request  must  be  postmarked  no later than September 16, 2011.  If  you  exclude  yourself  from the proposed  settlement:  you  will  not  receive  a  share  of  the  Settlement  Fund;  you will not be bound  by the settlement  or by any order or judgment entered by the Court approving the settlement; and you will be free to pursue your own claims against Harb Levy and the Released Parties at your own expense. 

OBJECT TO THE SETTLEMENT

If you wish to object to the proposed settlement, to the amount of your Net Starlight Investment, or to the attorneys’ fees, reimbursement of costs and expenses, and incentive payments to the Class Representatives, you must notify all of the following in writing and must state the reasons for your objection:

Your objection must state that you object to the Starlight/Harb Levy Settlement L.P., Settlement, Case No. CGC-10-496342 and must state the reason for your objection.  Your request must include your name, telephone number, and your signature and  be postmarked no later than September 16, 2011. The Court will consider all timely objections to the proposed settlement at a fairness hearing on October 7, 2011 at 9:30 a.m. (rescheduled hearing date) in Department 304 of the San Francisco Superior Court located at 400 McAllister Street, San Francisco, California 94102.

OBTAINING MORE INFORMATION

Additional information regarding the Settlement Agreement, the Notice and how to file your claim may be obtained by contacting the Settlement Administrator at (888) 773-8396.