The D&O Diary

The D&O Diary

A PERIODIC JOURNAL CONTAINING ITEMS OF INTEREST FROM THE WORLD OF DIRECTORS & OFFICERS LIABILITY, WITH OCCASIONAL COMMENTARY

Category Archives: Madoff Litigation

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“Officer, Arrest that Bank Account!” and Other Interesting Picower Settlement Details

Posted in Failed Banks, Madoff Litigation
Even after two years, the Madoff scandal continues to fascinate. Following close on the heels of last week’s news of Mark Madoff’s tragic suicide is the absolutely arresting news of Jeffry Picower’s estate’s $7.2 billion settlement with the U.S. government – to be specific, the precise amount of the settlement is $7,206,157,717, according to the … Continue Reading

Madoff Feeder-Fund Survives Dismissal Motion

Posted in Madoff Litigation
An astonishing amount of litigation followed in the wake of the Madoff scandal revelations, as I have detailed here. But thought the litigation filings have surged, the question remains whether the plaintiffs’ desperate attempts to recover their losses from third parties have any chance of success.   This question was underscored by the March 4, … Continue Reading

Now, Here’s Something: Homeowners’ Insurance Coverage for Madoff Losses?

Posted in Madoff Litigation
Could Madoff-related losses be insured under a homowners’ insurance policy? That is what is claimed in a class action complaint filed on August 19, 2009 in the Southern District of New York by Robert and Harlene Horowitz against their homeowners’ insurer and related entities. Their complaint (which can be found here) alleges that the insurer … Continue Reading

Madoff: The Insurance Coverage Litigation Arrives

Posted in Madoff Litigation
Given the massive amount of litigation arising out of the Madoff scandal as well as the enormous sums of money involved it is perhaps inevitable that the scandal would also generate its own category of insurance coverage litigation. As the two cases described below demonstrate, the Madoff-related coverage litigation has now arrived. There undoubtedly will … Continue Reading

It’s a World, World, World, World Madoff

Posted in Madoff Litigation
Something hit me this past week as I was reviewing the latest Madoff-related complaint to cross my desk. The class action complaint (here), was filed on May 29, 2009 in the Middle District of Florida by a Florida physician who had a Swiss Life variable annuity policy that was invested in the Platinum All Weather … Continue Reading

Madoff: The Britney Spears Connection?

Posted in Madoff Litigation
Although a wide variety of surprising details have come to light as the Madoff scandal has been exposed, there has as yet been no reported connection between the scandal and Britney Spears—that is, until now. A handwritten complaint filed in the Eastern District of Michigan on March 16, 2009 raises a number of, well, colorful … Continue Reading

NYAG Civil Fraud Action Against Merkin: Some Interesting Insurance Questions

Posted in Madoff Litigation
Following close on the heels of the Massachusetts regulator’s action filed last week against Madoff feeder-fund Fairfield Greenwich and related individuals, on April 6, 2009, New York Attorney General Andrew Cuomo initiated a civil action in New York (New York County) Supreme Court against J. Ezra Merkin and Madoff feeder fund Gabriel Capital Corporation. The … Continue Reading

Mass. Regulator Accuses Madoff Feeder Fund of “Fraud”

Posted in Madoff Litigation
In an April 1, 2009 administrative complaint (here), Massachusetts Secretary of the Commonwealth William Francis Galvin accused Madoff feeder fund Fairfield Greenwich Advisors and its Bermuda affiliate of "complete disregard of its fiduciary duties to its investors" and of "flagrant recurring misrepresentations" that "rise to the level of fraud."   If you have not yet … Continue Reading

Now, Madoff-Related ERISA Litigation

Posted in ERISA, Madoff Litigation
In a case demonstrating the range of both the potential legal theories and the prospective litigants that could become involved in Madoff-related litigation, a pension fund has filed an ERISA class action against an investment advisory firm for the advisory firm’s investment of the pension fund’s assets in a Madoff "feeder fund."   On February … Continue Reading

All Madoff, All the Time

Posted in Madoff Litigation
 When the Madoff scandal news first broke, I thought it would be like so many other fraud controversies, dominating the headlines briefly and then fading into the background – as seemingly has happened with the Marc Dreier debacle. But perhaps as a result of the scale and breadth of the harm caused, the Madoff scandal … Continue Reading

A Madoff Lawsuit Variant

Posted in Failed Banks, Madoff Litigation
Even though Madoff victims previously filed a securities class action lawsuit against Banco Santander and other parties in the Southern District of Florida (as discussed here), a different group of claimants has now filed a separate lawsuit in the Southern District of New York against substantially the same set of defendants. However, the new lawsuit … Continue Reading

Banco Santander Offers Madoff Victims Compensation, While Investors File Suit

Posted in Madoff Litigation
Banco Santander, the Spanish bank whose customers may have suffered as much as $3.1 billion in Madoff-related losses, is reportedly offering some clients compensation for their losses. Reports of this compensation proposal follow one day after investors filed a securities class action lawsuit against Banco Santander and related entities in federal court in Miami.   … Continue Reading

The List: Madoff Investor and Feeder Fund Litigation

Posted in Madoff Litigation, Securities Litigation
THE TABLE OF CASES LINKED BELOW WAS LAST UPDATED ON September 28,  2010. All signs are that the collapse of Bernard Madoff’s Ponzi scheme will produce a flood of litigation. By my count, there have already been at least seven federal securities class action lawsuits against Madoff, his firm, or the "feeder firms" that invested their clients’ funds with Madoff. There have also been … Continue Reading

Another Round of Madoff Investor Litigation

Posted in Madoff Litigation, Securities Litigation
UPDATE: A regularly updated list of all Madoff investor litigation, including in particular Madoff "feeder fund" litigation, can be accessed here. As further proof that the losses associated with the Madoff fraud scheme will trigger a wave of litigation, on December 23, 2008, plaintiffs’ lawyers initiated a lawsuit in the Southern District of New York on … Continue Reading

More Madoff “Feeder Fund” Lawsuits

Posted in Madoff Litigation, Securities Litigation
In the latest of what undoubtedly will prove to be a surge of Madoff-related litigation, investors have filed two more lawsuits against investment firms that invested their clients’ money with Bernie Madoff, resulting in massive investor losses.   UPDATE: Please note that a regularly updated table of all Madoff investor litigation, including in particular Madoff "feeder … Continue Reading

Madoff Victims’ Lawsuits Target Investment Firms, “Feeder Funds”

Posted in Madoff Litigation, Securities Litigation, Subprime Litigation
If today’s filings are any indication, a huge wave of Madoff victim lawsuits could be coming. Madoff investors were quick to sue Madoff and his firm, with the first complaint filed last Friday (as noted here). But with Madoff’s firm in liquidation and the money likely long gone, investors who lost money as a result … Continue Reading

Headline News: Deception, Corruption and Litigation

Posted in Foreign Corrupt Practices Act, Madoff Litigation, Securities Litigation
From this week’s news, it almost appears as if there had been some kind of an unannounced competition for most outrageously fraudulent or corrupt scheme. First, there was Marc Dreier’s incredibly brazen plot to peddle bogus notes to hedge funds using assumed identities. Then there was Illinois Governor Rod Blagojevich’s apparent attempt to flog Barrack … Continue Reading