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

BBTF Partner

Support BBTF

donate

Thanks to
Ray (RDP)
for his generous support.

Bookmarks

You must be logged in to view your Bookmarks.

Hot Topics

NewsblogHow to Cloak Your DNS to watch the Dodgers on MLB.TV
(42 - 8:45am, Apr 25)
Last: spycake

NewsblogYodano Ventura sparks Brawl
(52 - 8:38am, Apr 25)
Last: shoewizard

NewsblogOT: Soccer March 2015
(748 - 8:22am, Apr 25)
Last: I am going to be Frank

NewsblogOTP - April 2015: Church, baseball, politics: Rahm and Chuy work to close the deal
(3725 - 7:47am, Apr 25)
Last: ERROR---Jolly Old St. Nick

NewsblogJosh Hamilton could soon be gone from Los Angeles Angels - MLB - SI.com
(42 - 6:44am, Apr 25)
Last: bunyon

NewsblogFor ballpark design, it could be different game in future - Chicago Tribune
(31 - 5:21am, Apr 25)
Last: Bhaakon

NewsblogOT: NBC.news: Valve isn’t making one gaming console, but multiple ‘Steam machines’
(1654 - 4:07am, Apr 25)
Last: PASTE Thinks This Trout Kid Might Be OK (Zeth)

NewsblogThe early leaders in MLB’s “Franchise Four” thing have been announced
(75 - 3:53am, Apr 25)
Last: shoewizard

NewsblogAndrew Miller hasn't faced a lefty hitter yet
(21 - 3:50am, Apr 25)
Last: Fancy Pants Handles lap changes with class

Newsblog4-24-2015 OMNICHATTER
(126 - 3:45am, Apr 25)
Last: Gonfalon Bubble

NewsblogAt Trop, Tampa Mayor also waiting for chance to talk stadium
(6 - 3:31am, Apr 25)
Last: Curse of the Andino

NewsblogOT: Monthly NBA Thread - April 2015
(1528 - 2:15am, Apr 25)
Last: Booey

NewsblogOh, Barry Bonds, How Could We Have Doubted You? - NYTimes.com
(40 - 12:44am, Apr 25)
Last: Obo

NewsblogPosnanski: The Best Pitcher In Baseball History
(115 - 12:05am, Apr 25)
Last: TomH

NewsblogKozma takes disdain from Nats' fans as a compliment
(5 - 11:26pm, Apr 24)
Last: Yoenis Cespedes, Baseball Savant

Page rendered in 0.2136 seconds
69 querie(s) executed