10225. LINDA SHENWICK, DERIVATIVELY ON BEHALF OF HIMELSEIN MANDEL OFFSHORE LIMITED, plfap, v. HM RUBY FUND, L.P. def-res, HIMELSEIN MANDEL OFFSHORE LIMITED, Nominal def — Abraham, Fruchter & Twersky, LLP, New York (Jeffrey S. Abraham of counsel), for ap — Katten Muchin Rosenman LLP, New York (William M. Regan of counsel), for HM Ruby Fund, L.P., Wayne Himelsein, Jason G. Mandel, Himelsein Mandel Advisors LLC and Himelsein Mandel Fund Management LLC, res — Seward & Kissel LLP, New York (Jack Yoskowitz of counsel), for Vijayabalan Murugesu and Evan Burtton, res — Order, Supreme Court, New York County (Melvin Schweitzer, J.), entered June 7, 2012, which, to the extent appealed from, granted the motion of defendants HM Ruby Fund LP, Wayne Himelsein, Jason G. Mandel, Himelsein Mandel Advisors LLC and Himelsein Mandel Fund Management LLC to dismiss the complaint pursuant to CPLR 3211(a)(1), (3) and (7), and granted the motion of defendants Evan Burtton and Vijayabalan Murugesu to dismiss the complaint pursuant to CPLR 3211(a)(7) and (8), unanimously affirmed, with costs.
Plaintiff, an investor in the nominal defendant Offshore Fund which is registered in the Cayman Islands, commenced this derivative action against the managers, directors and investment advisors of the fund alleging that they engaged in self-dealing by artificially inflating the value of assets held by the fund, thereby also artificially inflating the fund’s net asset value so that they would receive higher compensation and bonuses. Plaintiff’s action, however, may not be maintained under the law of the Cayman Islands, which the parties agree is applicable (see e.g. In re BP p.l.c. Derivative Litigation, 507 F Supp 2d 302 [SD NY 2007]).
