Baseball for the Thinking Fan

Login | Register | Feedback

btf_logo
You are here > Home > Baseball Newsstand > Baseball Primer Newsblog > Discussion
Baseball Primer Newsblog
— The Best News Links from the Baseball Newsstand

Wednesday, July 27, 2011

N.Y. Times: Sandomir: Trustee for Victims of Madoff’s Scheme Hones Arguments Against Mets’ Owners

The high-stakes arguments — the trustee is seeking $1 billion from Wilpon and Katz — are set to be heard, and perhaps decided, by Judge Jed S. Rakoff in United States District Court in Manhattan on Aug. 17. ...

Picard’s argument appears to result in part from the successful effort by Wilpon and Katz to transfer the trustee’s lawsuit from bankruptcy court to district court — a procedural victory for them.

Wilpon and Katz wanted the change so their dealings with Madoff might be judged under securities law, not the federal bankruptcy code. Seen merely as individual investors, they argued, they were under no special obligation to check out the trustworthiness of Madoff’s investing.

In a 25-page filing, though, Picard’s lawyers cite what they argue is a body of established New York and securities law that holds that ordinary individual investors — and not necessarily sophisticated ones — have real obligations to meaningfully check out warnings or hints of a possible fraud. ...

Rakoff could dismiss the case entirely or rule on certain critical issues, and return all or parts of the lawsuit to United States Bankruptcy Court.

bobm Posted: July 27, 2011 at 05:14 AM | 1 comment(s) Login to Bookmark
  Tags: business, mets

Reader Comments and Retorts

Go to end of page

Statements posted here are those of our readers and do not represent the BaseballThinkFactory. Names are provided by the poster and are not verified. We ask that posters follow our submission policy. Please report any inappropriate comments.

   1. Sam M. Posted: July 27, 2011 at 05:24 PM (#3886636)
This is a very smart move by Picard. It's a tactical retreat in one sense, accepting a "reasonable person" standard that may leave a fact-finder ultimately less willing to find that Wilpon and Katz should have known what was going on -- whereas under the approach Picard has been urging, a "sophisticated investor" would have been more savvy. But it seems to me it gives the defendants almost no path to a quick resolution -- the precedent accepting Picard's theory/standard is awfully solid, and that means he survives a motion to dismiss. And I'd be pretty surprised if he doesn't have enough to survive summary judgment as well. And that means we get to trial -- and time is the one thing Wilpon doesn't have. The pressure on him to settle (already great) is just going to get greater as the losses mount and his creditors press in.

You must be Registered and Logged In to post comments.

 

 

<< Back to main

News

All News | Prime News

Old-School Newsstand


BBTF Partner

Dynasty League Baseball

Support BBTF

donate

Thanks to
JPWF13
for his generous support.

Bookmarks

You must be logged in to view your Bookmarks.

Hot Topics

NewsblogIs Red Sox' slump temporary, or did they come back to earth?
(14 - 2:21am, Sep 21)
Last: The Yankee Clapper

Sox TherapyIT’S OVER
(2 - 2:15am, Sep 21)
Last: the Hugh Jorgan returns

NewsblogOTP 2018 September 17: How Brett Kavanaugh explains his baseball ticket debt
(1564 - 1:49am, Sep 21)
Last: OCF

NewsblogOT - Catch-All Pop Culture Extravaganza (September 2018)
(372 - 1:18am, Sep 21)
Last: Gonfalon Bubble

NewsblogWho needs Justice when you have OMNICHATTER! for Sept. 20, 2018
(159 - 1:01am, Sep 21)
Last: Howie Menckel

NewsblogOT - 2018 NBA Thread (Pre-Season Edition)
(445 - 11:49pm, Sep 20)
Last: tshipman

NewsblogWillians Astudillo Should Be Your New Favorite Player
(19 - 11:41pm, Sep 20)
Last: QLE

NewsblogDodgers bash their way to MLB history with record-tying seven 20-homer hitters
(26 - 11:20pm, Sep 20)
Last: Misirlou doesn't live in the restaurant

NewsblogSnell wins 20th, ties Rays record in 4-0 victory over Texas
(45 - 11:10pm, Sep 20)
Last: Buck Coats

NewsblogIt's not a tantrum, it's a cry for OMNICHATTER! for Sept. 19, 2018
(91 - 10:35pm, Sep 20)
Last: ERROR---Jolly Old St. Nick

NewsblogThe Orioles became the first professional sports team to wear Braille jerseys
(52 - 9:50pm, Sep 20)
Last: What did Billy Ripken have against ElRoy Face?

NewsblogOT: Soccer Thread (2018-19 season begins!)
(817 - 9:32pm, Sep 20)
Last: Richard

NewsblogOrioles match club record with 107th loss, 5-0 to Blue Jays before tiny home crowd
(59 - 5:50pm, Sep 20)
Last: escabeche

Sox Therapy11 Days Later
(76 - 5:15pm, Sep 20)
Last: Jose is an Absurd Force of Nature

Sox Therapy6,036 Days
(15 - 2:49pm, Sep 20)
Last: Nasty Nate

Page rendered in 0.2137 seconds
46 querie(s) executed