Second Circuit Decision In Madoff Case Limits Avoidance Of Securities-Related Transfers As Fraudulent Transfers
Partner Richard Levy, Jr., Co-Chair of the Bankruptcy, Reorganization and Creditors’ Rights Group, has authored an important Legal Update discussing the Second Circuit’s long awaited ruling on the scope of the SIPA Trustee’s remedies in the Madoff Securities clawback litigations.
A tremendous victory for the innocent customers named in the Trustee’s lawsuits - those who were not alleged by the Trustee to have had knowledge of, complicity in, or willful blindness to, the Madoff scheme - the decision eliminates more than $1.8 billion in clawback exposure.
Mr. Levy argued the appeal in March 2014 on behalf of clients and similarly-situated defendants affected by the issue in more than 600 clawback actions filed by Irving H. Picard, as SIPA Trustee.
To read the Legal Update in its entirety, please click here.
