Baseball for the Thinking Fan

Login | Register | Feedback

btf_logo
You are here > Home > Baseball Newsstand > 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

Dynasty League Baseball

Support BBTF

donate

Thanks to
BFFB
for his generous support.

You must be logged in to view your Bookmarks.

Hot Topics

NewsblogOT: Wrestling Thread November 2014
(2577 - 1:42am, Dec 10)
Last: 57i66135 is a hard word for me.

NewsblogXander Bogaerts, Padres agree to 11-year, $280M deal, sources confirm
(54 - 12:35am, Dec 10)
Last: villageidiom

NewsblogOT Soccer Thread - European Leages Return
(772 - 11:31pm, Dec 09)
Last: Textbook Editor

NewsblogCarlos Rodón rumors
(4 - 11:17pm, Dec 09)
Last: Banta

NewsblogSources: Mets signing CF Brandon Nimmo, RHP David Robertson
(32 - 10:52pm, Dec 09)
Last: Banta

Newsblog2022-23 NBA Kick-Off Thread
(687 - 10:24pm, Dec 09)
Last: 57i66135 is a hard word for me.

NewsblogOT - World Cup Thread
(596 - 10:06pm, Dec 09)
Last: Jose is Absurdly Correct but not Helpful

Hall of Merit2023 Hall of Merit Ballot Discussion
(303 - 9:42pm, Dec 09)
Last: Dr. Chaleeko

NewsblogChaim Bloom's empty words about Bogaerts are insulting
(38 - 7:45pm, Dec 09)
Last: Benji Gil Gamesh VII - The Opt-Out Awakens

NewsblogMasataka Yoshida, Red Sox agree to deal
(49 - 6:50pm, Dec 09)
Last: Darren

NewsblogSource: Cardinals, Willson Contreras reach 5-year, $87.5M deal
(32 - 6:21pm, Dec 09)
Last: Howie Menckel

NewsblogTrevor Williams: Heading to Washington
(1 - 5:16pm, Dec 09)
Last: cHiEf iMpaCt oFfiCEr JE

NewsblogJacob deGrom signs with Rangers
(102 - 4:51pm, Dec 09)
Last: cHiEf iMpaCt oFfiCEr JE

Hall of MeritMock Hall of Fame Ballot 2023
(16 - 10:13am, Dec 09)
Last: Tiboreau

NewsblogBrooks Raley: Shipped to Mets
(13 - 9:53am, Dec 09)
Last: snapper (history's 42nd greatest monster)

Page rendered in 0.2361 seconds
45 querie(s) executed