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Procedures for Madoff Clawback Avoidance Actions Approved

On Wednesday, November 10, 2010, Judge Lifland approved an order outlining the procedures for the soon to be filed Madoff clawback lawsuits.  Lax & Neville, LLP, along with other law firms, opposed the Trustee’s motion and asked the Court to stay all proceedings until the Second Circuit ruled on the Net Equity issue.  Judge Lifland denied the request. In anticipation of that result, Lax & Neville, LLP, again working with other firms, negotiated with Baker & Hostetler to modify the procedures proposed by the Trustee to better protect the rights of victims.  Those procedures were approved by Judge Lifland.

From our recent conversations with attorneys representing the Trustee, we have learned that the clawback lawsuits will likely be filed in several waves starting soon.  Accordingly, if you are Madoff victim that is not in the first wave of Madoff clawback lawsuits, it does not mean that the Trustee has chosen not to sue you. The Trustee has until December 11, 2010 to file the Madoff clawback lawsuits. If you receive a clawback lawsuit, please call us immediately. There are defenses available to these actions and Lax & Neville, LLP is prepared to defend you.