On June 9, 2009, the United States Court of Appeals for the Second Circuit reinstated hedge fund investors’ claims that Banc of America Securities LLC (BAS) aided and abetted the frauds and breaches of fiduciary duty committed by the manager of funds for which BAS served as prime broker.  It reasoned that the investors had adequately pleaded that BAS’ actions proximately caused their losses.  We detail the factual background and legal analysis of the most recent opinion in a case that the Hedge Fund Law Report has been tracking since last year.  See “Federal Court Permits Suit Concerning Collapsed Lancer Funds to Proceed in Part,” Hedge Fund Law Report, Vol. 2, No. 5 (Feb. 4, 2009); “Federal Court Bars Investors’ Claims Against Hedge Fund Administrator,” Hedge Fund Law Report, Vol. 1, No. 28 (Dec. 16, 2008).