As previously reported in the Hedge Fund Law Report, placement agents in the hedge fund industry face an uncertain future after the New York pension fund kickback scandal and the Securities and Exchange Commission’s new proposed pay to play rules. See, e.g., “What Do the Regulatory and Industry Responses to the New York Pension Fund ‘Pay to Play’ Scandal Mean for the Future of Hedge Fund Marketing?,” Hedge Fund Law Report, Vol. 2, No. 30 (Jul. 29, 2009); “How Has the New York Pension Fund Kickback Scandal Changed the Landscape for Placement Agents, and for Hedge Fund Managers who Use Them?,” Hedge Fund Law Report, Vol. 2, No. 17 (Apr. 30, 2009). As a result, new court decisions interpreting the interaction of placement agents and hedge fund managers, including their contractual rights, have increased significance for hedge fund industry participants. This article describes the facts and legal analysis of one such notable decision, issued September 22, 2009 by United States Court of Appeals for the Second Circuit.