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
Tuque
for his generous support.

Bookmarks

You must be logged in to view your Bookmarks.

Hot Topics

NewsblogMariners catcher Steve Clevenger tweets protesters should be treated 'like animals'
(564 - 4:46pm, Sep 27)
Last: simon bedford

NewsblogOTP 2016 Sep 26: A single for Donald Trump - He doesn’t have to hit a home run to send Hillary to the showers
(878 - 4:46pm, Sep 27)
Last: GregD

NewsblogFallout from brawl becomes big question for Blue Jays now - Sportsnet.ca
(8 - 4:39pm, Sep 27)
Last: What did Billy Ripken have against ElRoy Face?

NewsblogMariners gain in Wild Card on Cano's 2 homers | MLB.com
(11 - 4:38pm, Sep 27)
Last: snapper (history's 42nd greatest monster)

NewsblogAre Baseball's MVP Voters Racist?
(20 - 4:33pm, Sep 27)
Last: The Yankee Clapper

NewsblogCarlos Delgado: Colin Kaepernick's actions rooted in American ideals
(4 - 4:29pm, Sep 27)
Last: Davo's Favorite Tacos Are Moose Tacos

NewsblogNationals' Wilson Ramos injures right knee | MLB.com
(3 - 4:17pm, Sep 27)
Last: bunyon

NewsblogYankees say good riddance to David Ortiz, the best to ever own them | New York Post
(16 - 4:12pm, Sep 27)
Last: villageidiom

NewsblogWhy some agents have serious concerns about MLB's next CBA | FOX Sports
(2 - 4:07pm, Sep 27)
Last: Jose Remains The Most Absurd Thing on the Site

NewsblogThe Golden Age of Baseball Writing
(8 - 4:05pm, Sep 27)
Last: Betts, Bogaerts, and D Price(GGC)

NewsblogOT: August 2016 Soccer Thread
(600 - 3:41pm, Sep 27)
Last: J. Sosa

NewsblogFans jeer as Cardinals suffer 'embarrassing loss' | St. Louis Cardinals | stltoday.com
(14 - 3:00pm, Sep 27)
Last: All Sleepy knows is what's on the internet

NewsblogJose Fernandez Dies In Boating Accident - MLB Trade Rumors
(226 - 2:54pm, Sep 27)
Last: There's a bustle in Misirlou's hedgerow

Hall of MeritMost Meritorious Player: 1997 Ballot
(6 - 2:50pm, Sep 27)
Last: EricC

NewsblogTwins To Hire Derek Falvey To Oversee Baseball Operations
(2 - 2:47pm, Sep 27)
Last: Bitter Mouse, Space Tyrant

Page rendered in 0.1318 seconds
47 querie(s) executed