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
The Kinder, Gentler Ray (RDP)
for his generous support.

Bookmarks

You must be logged in to view your Bookmarks.

Hot Topics

NewsblogNightengale: MLB kills 'this time it counts' for stronger All-Star Game incentive
(44 - 6:38am, Dec 03)
Last: Never Give an Inge (Dave)

NewsblogArlington, Rangers unveil timeline for $1 billion stadium project
(5 - 5:18am, Dec 03)
Last: TVerik, who wonders what the hell is "Anskeey"

Newsblog2016 Non-Tender Tracker
(1 - 4:46am, Dec 03)
Last: Joyful Calculus Instructor

NewsblogVenezuelan players rally behind Omar Vizquel, threaten WBC boycott
(8 - 3:49am, Dec 03)
Last: Fancy Pants with a clinging marmoset on his Handle

NewsblogOT - November* 2016 College Football thread
(446 - 3:03am, Dec 03)
Last: cmd600

NewsblogLifetime Achievement Award: Peter Gammons | BaseballAmerica.com
(113 - 1:47am, Dec 03)
Last: Infinite Yost (Voxter)

NewsblogHall of Fame: Bud Selig lock for election on Today's Game ballot | SI.com
(12 - 1:27am, Dec 03)
Last: SoSHially Unacceptable

NewsblogOTP: 28 November 2016: Bud Selig reminisces about 1999 MLB trip to Cuba, meeting Fidel Castro
(1603 - 11:54pm, Dec 02)
Last: The Kinder, Gentler Ray (RDP)

NewsblogOT: NBA 2016-17 Preseason Thread
(1121 - 11:39pm, Dec 02)
Last: Dandy Little Glove Man

NewsblogPrimer Dugout (and link of the day) 12-2-2016
(7 - 10:44pm, Dec 02)
Last: charityslave is thinking about baseball

NewsblogRyan Thibs has his 2017 HOF Tracker Up and Running
(83 - 10:36pm, Dec 02)
Last: cardsfanboy

Gonfalon CubsStarting to think about 2017
(71 - 10:35pm, Dec 02)
Last: Moses Taylor, Unwavering Optimist

NewsblogA’s, Yonder Alonso agree on new deal
(15 - 10:33pm, Dec 02)
Last: charityslave is thinking about baseball

NewsblogNationals Acquire Derek Norris
(2 - 9:56pm, Dec 02)
Last: depletion

NewsblogBraves Acquire Jaime Garcia
(18 - 7:28pm, Dec 02)
Last: The Duke

Page rendered in 0.1366 seconds
47 querie(s) executed