Latest News on Wilpon Madoff Lawsuit

This just broke a few minutes ago.  Thanks to @bpalmthegreat for waking me up out of my nap to catch this.

IanBegley Here is Madoff decision (more): Judge Rakoff has dismissed all claims except those alleging actual fraud & equitable subordination #mets 9/27/11 4:57 PM IanBegley Madoff decision cont’d: Parties will appear in court Wednesday at 3 p.m. to schedule proceedings related to the remaining claims. #mets 9/27/11 4:57 PM IanBegley RT@SI_JonHeyman: judge got it right. to say wilpons “knew or should have known” was silly. why should they have known more than others?#nym 9/27/11 5:11 PM

AdamRubinESPN Judge: the Trustee (Picard) may recover defendants’ net profits simply by proving that defendants did not provide value for monies received/ 9/27/11 5:16 PMSpeaking with expert who agrees with my interpretation. $700M very hard to prove for Picard because has to almost show they knew Ponzi But the fictitious profits is in good shape for Picard. Only question is whether $83M or $379M depending on state of limitations.

From Reuters.com

A Manhattan federal judge on Tuesday threw out part of a $1 billion lawsuit against owners of the New York Mets baseball team by the trustee seeking money for victims of Bernard Madoff’s Ponzi scheme.

U.S. District Judge Jed Rakoff dismissed all but two claims by the trustee Irving Picard against the Mets owners, including Fred Wilpon, Saul Katz and others at Sterling Equities.

One of the claims alleges actual fraud. The other would require the defendants’ claims against the bankruptcy estate of Madoff’s firm to be subordinated to those of others.

A spokeswoman for Picard said the trustee had no comment pending a “thorough evaluation” of the opinion. Lawyers for the Mets owners were not available for comment.

Mario Cuomo, the former New York governor mediating the dispute, also had no immediate comment.

UPDATE

From NY TIMES.COM (click for full Story)

United States District Court Judge Jed S. Rakoff let stand the trustee’s claim that the team’s owners were willfully blind to warnings that Madoff was possibly engaged in a fraud during their many years of investing with him and seemed to clear the way for the trustee, Irving H. Picard, to force the men to return the profits they earned from their investments with Madoff.

But as a consequence of Rakoff’s ruling — a complex decision involving bankruptcy and securities law — the trustee at most could force the owners, Fred Wilpon andSaul Katz, to turn over $300 million to $400 million.

 

 

 

 

I have no idea what it will all end up meaning but here ya go folks. Digest.