Today an article appeared in the Wall Street Journal (“WSJ”) indicating that the Trustee for the Bernard L. Madoff Investment Securities liquidation, Irving Picard, intends to sue 1,000 Madoff victims in clawback actions. The clawback actions will be brought through an adversarial proceeding in the Bankruptcy Court before the Honorable Judge Lifland. Mr. Picard stated that he will likely sue what he has incorrectly described as “net winners.” A copy of the article is available with an online subscription to the WSJ here. You can also find some commentary on the story here.
Lax & Neville, LLP currently represents numerous Madoff victims that have been sued by the Trustee in clawback actions. We also represent other Madoff victims who have been the subject of the Trustee’s subpoenas for documents and depositions, which may also be the precursor of an adversarial proceeding brought by the Trustee. Under the law, Mr. Picard must file the clawback lawsuits by December 2010, the two-year anniversary of Mr. Madoff’s arrest and the filing of regulatory proceedings against him. However, in the article, Mr. Picard is quoted as saying, “We’re not going to wait until the last minute” to file these suits. If you are a Madoff victim, or the family member of a Madoff victim, and you receive notice of a pending action from the Trustee, or you simply have questions regarding clawback actions, the possible defenses to and resolution of, a clawback action, you should contact a qualified attorney immediately. If you have concerns or questions regarding this article or the “net equity” issue, please do not hesitate to contact Lax & Neville, LLP for a free consultation.