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
Jim Wisinski
for his generous support.

Bookmarks

You must be logged in to view your Bookmarks.

Hot Topics

Sox TherapyFeet of Clay
(1 - 6:13pm, May 27)
Last: Jose Remains The Most Absurd Thing on the Site

NewsblogWade Boggs feels ‘back home’ as Red Sox retire his No. 26 at Fenway Park
(40 - 6:12pm, May 27)
Last: Jose Remains The Most Absurd Thing on the Site

NewsblogOTP 2016 May 23: Baseball owners hear from Democratic, Republican strategists
(1117 - 6:11pm, May 27)
Last: Bitter Mouse, Space Tyrant

NewsblogUncompetitive Minor League Wages Might Be Deterring Talent
(55 - 6:08pm, May 27)
Last: Joe Kehoskie

NewsblogHector Olivera suspended 82 games for domestic violence incident
(14 - 6:08pm, May 27)
Last: Cargo Cultist

NewsblogTwins suspend pitching coach Neil Allen after DWI arrest
(4 - 6:03pm, May 27)
Last: Cargo Cultist

NewsblogMLB: Vin Scully recites the speech about baseball from "Field of Dreams".
(34 - 6:01pm, May 27)
Last: Perry

NewsblogAngels pitchers opt for stem-cell therapy | MLB.com
(5 - 6:00pm, May 27)
Last: Cargo Cultist

NewsblogPrimer Dugout (and link of the day) 5-27-2016
(9 - 5:59pm, May 27)
Last: Eric J can SABER all he wants to

NewsblogTony LaRussa invades booth to argue with Pirates braodcaster
(19 - 5:53pm, May 27)
Last: SoSHially Unacceptable

NewsblogOMNICHATTER 5-27-16
(20 - 5:52pm, May 27)
Last: Los Angeles El Hombre de Anaheim

NewsblogHector Olivera’s suspension doesn’t fully clarify future with Braves | Jeff Schultz blog
(5 - 5:51pm, May 27)
Last: RJ in TO

NewsblogStew Thornley's macabre adventure: Visiting every dead baseball Hall of Famer's grave
(52 - 5:39pm, May 27)
Last: Batman

NewsblogBaseball Prospectus | Tools of Ignorance: The Team-Mandated Player Opt-Out
(3 - 5:31pm, May 27)
Last: Walt Davis

NewsblogMiklasz: Cards Blow a Chance to Beat Cubs: Another Reason to Despise the Sac Bunt
(24 - 5:15pm, May 27)
Last: Sweatpants

Page rendered in 0.2385 seconds
47 querie(s) executed