On October 6th, a federal district court denied in part motions to dismiss securities fraud claims brought by investors in a Madoff feeder fund. In doing so, the court discussed defendants' motives and opportunities for withholding their suspicions concerning Madoff, third-party reliance upon others' misstatements and omissions, auditor liability, ERISA liability and the interplay between the state and federal law claims. In re Beacon Associates Litigation.