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Union pension plan sues over Madoff assets

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The $295 million Pension Fund for Hospital and Health Care Employees in Philadelphia and Vicinity filed a lawsuit against Austin Capital Management over the fund of funds' $184 million in assets with Madoff-related securities, virtually all of which were lost when the Ponzi scheme was uncovered late last year.

The complaint filed in US District Court in Pennsylvania claims that Austin was a fiduciary to the union pension fund and failed to "adequately investigate, conduct a complete and proper due diligence and evaluate the evidence" that any investment in Madoff would be risky, imprudent and inappropriate.

The Hospital and