Cases / Notable Cases

Fairfield Sentry Limited Fund - Fairfield Greenwich -- Bernard L. Madoff and Bernard L. Madoff Investment Securities LLC


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UPDATE IN ANWAR v. FAIRFIELD GREENWICH LIMITED (MADOFF) SECURITIES LITIGATION (09-CV-00118 (VM))

The U.S. District Court, on December 6, 2019, entered an Order approving the supplemental distribution of $314,362 in settlement funds to Anwar class members who had previously cashed their settlement checks and who would receive a supplemental distribution of at least $100.  The funds that are being distributed are amounts that remained in the settlement accounts from uncashed checks from prior distributions.  The minimum payment amount of $100 was approved by the Court to lessen the burden and administrative costs of making additional distributions of the limited funds available. 

Approximately 344 class members will participate in the supplemental distribution.  Class members who are among the claimants scheduled to receive a supplemental distribution may be contacted by the claims administrator to verify their current address and/or wire instructions.  Those communications are authorized pursuant to the Court’s order.  A distribution in January 2020 is currently planned.

Wolf Popper LLP Obtains Final Approval of $125 Million Partial Settlement With Citco Defendants, Bringing the Total of Plaintiffs' Recoveries to $265 Million (including amounts held in escrow)

Wolf Popper LLP, along with co-lead counsel in Anwar v. Fairfield Greenwich Limited, 09-cv-118 (VM) (FM) (the “Action”), has obtained final approval of the Stipulation of Settlement with defendants affiliated with The Citco Group Limited (collectively, the “Citco Defendants”).  The Stipulation of Settlement resolves all claims asserted in the Action against the Citco Defendants in exchange for a payment of $125,000,000 to be distributed to the Settlement Class.  The Final Order approving the Citco Settlement was entered November 20, 2015. The last day to file claims to participate in the Citco Settlement was December 28, 2015. Further information concerning the Citco Settlement is available in the Notice Of Proposed Partial Settlement Of Class Action and Settlement Fairness Hearing and on the settlement website (www.fairfieldgreenwichlitigation.com).

Separately, plaintiffs in the Anwar litigation have entered into a $55,000,000 Settlement Agreement of their claims against Defendants PwC Netherlands and PwC Canada.  On January 7, 2016, the District Court entered a Preliminary Approval Order scheduling a hearing on final approval of the PwC Settlement for May 6, 2016 at 9:30 a.m. Claim forms to participate in the PwC Settlement must be submitted to the Claims Administrator by May 23, 2016. A detailed Class Notice and Proof of Claim will be mailed to class members and posted on this website and the settlement website (www.fairfieldgreenwichlitigation.com) on January 22, 2016.

The PwC Settlement brings the total of Plaintiffs' recoveries on behalf of investors in the Fairfield Greenwich fund, to $265,250,000, including amounts held in escrow.  Settlements were previously entered into with defendants Fairfield Greenwich Limited and affiliated entities and individuals for $80,250,000 ($30,000,000 of which remains in escrow and may be distributed to Authorized Claimants subject to certain conditions) and GlobeOp Financial Services LLC for $5,000,000.

Court Reschedules Hearing to Consider Final Approval of Settlement with Citco Defendants to November 20, 2015 at 10:30 a.m.

Wolf Popper LLP Obtains Preliminary Approval of $125 Million Partial Settlement With Citco Defendants

Wolf Popper LLP, along with co-lead counsel in Anwar v. Fairfield Greenwich Limited, 09-cv-118 (VM) (FM) (the “Action”), has entered into a Stipulation of Settlement with defendants affiliated with The Citco Group Limited (collectively, the “Citco Defendants”).  The Settlement resolves all claims asserted in the Action against the Citco Defendants in exchange for a payment of $125,000,000 to be distributed to the Settlement Class upon final approval.  The Settlement is subject to final approval by the Honorable Victor Marrero of the United States District Court for the Southern District of New York.  On August 13, 2015, Judge Marrero entered a Preliminary Approval Order authorizing the dissemination of a Notice Of Proposed Partial Settlement Of Class Action and Settlement Fairness Hearing and Proof of Claim and Release Form, and establishing deadlines, among other things, for Settlement Class Members to file Proofs of Claim.  The Preliminary Approval Order also scheduled a hearing on final approval of the settlement for November 20, 2015, at 11:00 a.m.

The settlement does not resolve Plaintiffs’ claims against Defendants PwC Netherlands, or PwC Canada, which Plaintiffs are continuing to litigate vigorously.  On March 3, 2015, the District Court rendered a Decision and Order certifying the class action against the remaining defendants, but excluding from the definition of the class members whose investments in the Funds were made in the following countries:  Switzerland, France, Luxembourg, Israel, Kuwait, Korea, North Korea, Pitcairn, Tokelau, Mongolia, China, Liechtenstein, Japan, Oman, Taiwan, United Arab Emirates, Qatar, Saudi Arabia, Bosnia, Andorra, San Marino, Namibia, Monaco, Germany, and South Africa. 

The PwC Settlement brings the total of Plaintiffs' recoveries on behalf of investors in the Fairfield Greenwich fund, to $265,250,000, including amounts held in escrow.  Settlements were previously entered into with defendants Fairfield Greenwich Limited and affiliated entities and individuals for $80,250,000 ($30,000,000 of which remains in escrow and may be distributed to Authorized Claimants subject to certain conditions) and GlobeOp Financial Services LLC for $5,000,000.

Wolf Popper LLP Obtains Final Approval of Partial Settlement in Madoff Feeder Fund Litigation Against Fairfield Greenwich Group 

Wolf Popper LLP, along with co-lead counsel in the matter of Anwar, et al., v. Fairfield Greenwich Limited, et al., 09-cv-118 (VM)(FM), has obtained Final Court Approval of the Stipulation of Settlement with defendants associated with the Fairfield Greenwich Group. The stipulated settlement resolves all claims asserted in the Action against the Fairfield Greenwich Group, and provides for a payment in the amount of $80,250,000, including a minimum of $50,250,000 to be distributed to the Settlement Class, and an additional $30,000,000 to be distributed if not used to resolve other claims.  Additional information on the Settlement is available in the Notice Of Proposed Partial Settlement Of Class Action and Settlement Fairness Hearing.  Settlement Class Members are required to submit a Proof of Claim and Release by April 17, 2013 to participate in the Settlement.

The settlement does not resolve Plaintiffs’ claims against Defendants PwC Netherlands, PwC Canada, the Citco entities, or GlobeOp, which Plaintiffs are continuing to litigate vigorously. On February 25, 2013, the District Court rendered a Decision and Order certifying the class action against the remaining defendants, but excluding from the definition of the class residents of France, Luxembourg, Israel, Kuwait, Korea, North Korea, Picairn, Tokelau, Mongolia, China, Liechtenstein, Japan, Oman, Taiwan, United Arab Emirates, Qatar, Saudi Arabia, Bosnia, Andorra, San Marino, Namibia, Monaco, Germany, and South Africa.  Residents of those countries are urged to contact class counsel with respect to their rights. 

Wolf Popper LLP Defeats The Madoff Trustee’s Motion To Enjoin The Proposed Anwar Class Action Settlement Against The Fairfield Greenwich Defendants

Wolf Popper LLP is pleased to report that we and our co-counsel have defeated the application by Irving Picard, trustee for the liquidation of Bernard L. Madoff Investment Securities LLC, seeking to enjoin the proposed class action settlement reached between Plaintiffs and the FG Defendants in Anwar v. Fairfield Greenwich Ltd.  The proposed settlement provides for $50.25 million in immediate cash payments as well as other consideration. 

Judge Victor Marrero, in denying the Trustee’s application in an Order dated March 21, 2013, reiterated that the claims asserted by plaintiffs in the Action are separate and distinct from those possessed by creditors of the Madoff estate:  “The Anwar Plaintiffs are not cutting the Trustee’s (or SIPA’s) lunch line, they are dining in a different cafeteria altogether.”  The Court also called the Trustee’s application “a textbook example of unreasonable delay,” and thus “independently barred as untimely under the equitable doctrine of laches.”

Wolf Popper LLP Wins Certification of Remaining Claims On Behalf of FG Feeder Fund Investors In Madoff-Related Lawsuit

Wolf Popper LLP, plaintiffs’ co-lead counsel, is pleased to report that on February 25, 2013, the U.S. District Court for the Southern District of New York, Hon. Victor Marrero, rendered a Decision and Opinion granting plaintiffs’ motion for class certification on the pending claims against the PricewaterhouseCoopers, GlobeOp Financial Services LLC, and Citco Group defendants arising out of Madoff-related feeder fund investments marketed by the Fairfield Greenwich Group (“Funds”). The case is Pasha S. Anwar et al. v. Fairfield Greenwich Ltd. et al, case number 1:09-cv-00118. 

Judge Marrero ruled the plaintiffs had satisfied the requirements for a class action in their claims for violations of the federal securities law, breach of fiduciary duty, common law fraud or negligent misrepresentation, aiding and abetting common law fraud and the breach of fiduciary duty, breach of contract and quasi contract against the Citco Group defendants (the Funds’ administrators and custodians), PricewaterhouseCoopers defendants (the Funds’ audit firms) and GlobeOp Financial Services LLC (the administrator for certain of the Funds), but excluded class members whose investments in the Funds were made in countries not likely to recognize the court’s judgment due to public policy concerns. 

The plaintiffs in the action have previously entered into a Stipulation of Settlement with the FGG-related defendants for $50 million in immediate cash payments as well as other consideration. On March 25, 2013, Judge Marrero entered a Final Judgment and Order approving plaintiffs' partial settlement with the FGG-related defendants for $50 million in immediate cash payments as well as other consideration. Settlement Class Members are required to submit a Proof of Claim and Release by April 17, 2013 to participate in the settlement.

Wolf Popper LLP Obtains Preliminary Approval of Partial Settlement in Madoff Feeder Fund Litigation Against Fairfield Greenwich Group With Hearing on Final Approval Scheduled for March 22, 2013

Wolf Popper LLP, along with co-lead counsel in the matter of Anwar, et al., v. Fairfield Greenwich Limited, et al., 09-cv-118 (VM)(FM), has entered into a Stipulation of Settlement with defendants associated with the Fairfield Greenwich Group. The stipulated settlement resolves all claims asserted in the action against the Fairfield Greenwich Group, and provides for a payment in the amount of $80,250,000, including a minimum of $50,250,000 to be distributed to the settlement class upon final approval, and an additional $30,000,000 to be distributed if not used to resolve other claims. The partial settlement is subject to final approval of the Honorable Victor Marrero of the United States District Court for the Southern District of New York.  On November 30, 2012, Judge Marrero entered a Preliminary Approval Order authorizing the dissemination of a Notice Of Proposed Partial Settlement Of Class Action and Settlement Fairness Hearing and Proof of Claim and Release form, and establishing deadlines, among other things, for Settlement Class Members to file Proofs of Claim.  The Preliminary Approval Order also scheduled a hearing on final approval of the settlement for March 22, 2013, at 11:00 a.m.

The settlement does not resolve Plaintiffs’ claims against Defendants PwC Netherlands, PwC Canada, the Citco entities, or GlobeOp, which Plaintiffs are continuing to litigate vigorously. On February 25, 2013, the District Court rendered a Decision and Order certifying the class action against the remaining defendants, but excluding from the definition of the class residents of France, Luxembourg, Israel, Kuwait, Korea, North Korea, Picairn, Tokelau, Mongolia, China, Liechtenstein, Japan, Oman, Taiwan, United Arab Emirates, Qatar, Saudi Arabia, Bosnia, Andorra, San Marino, Namibia, Monaco, Germany, and South Africa.

Judge in Fairfield Greenwich Case Substantially Denies Defendants’ Efforts to Reconsider the Court’s Prior Holding Sustaining Plaintiffs’ Claims 

On August 6, 2012, Judge Victor Marrero substantially a denied a request by Defendants to reconsider the Court’s prior decisions upholding Plaintiffs’ negligence-based claims based on two recent opinions rendered by the U.S. Court of Appeals for the Second Circuit. In rejecting the Defendants’ attempt to revisit this issue, the Court found that Defendants’ arguments did not “compel[] dismissal of the Plaintiffs’ negligence-based Inducement Claims at this stage of the proceedings.”

The case remains in discovery and plaintiffs’ class certification motion is fully briefed and pending.

Court Substantially Sustains Complaint Over Defendants’ Motions to Dismiss in the Fairfield Greenwich-Madoff Litigation

On August 18, 2010, U.S. District Judge Victor Marrero issued an opinion sustaining most of the claims asserted by plaintiffs in their Second Amended Complaint, and significantly denying defendants’ motions to dismiss.  The Court sustained most of plaintiffs’ claims against the Fairfield Greenwich Group (FGG), the FGG corporate and partnership entities, the individual executives and partners of FGG, the Citco entities, and the Canadian and Dutch offices of PricewaterhouseCoopers.  The sustained claims include counts for securities fraud, common law fraud, breach of fiduciary duty, gross negligence, negligent misrepresentation, negligence, third party beneficiary breach of contract, unjust enrichment, aiding and abetting fraud and aiding and abetting breach of fiduciary duty.  Judge Marrero, on July 29, 2010, had issued an earlier opinion rejecting defendants’ arguments that the New York State Martin Act preempted plaintiffs’ common law claims.  The case will now proceed to discovery.

Wolf Popper LLP was appointed as interim co-lead counsel in a consolidated class action brought on behalf of investors in the Fairfield Sentry and Greenwich Sentry funds that were managed by Bernard L. Madoff.  The January 30, 2009 order, by U.S. District Judge Victor Marrero, was entered in the consolidated action captioned as Anwar et al. v. Fairfield Greenwich Limited, et al., (09-CV-0118 (VM)), pending in the Southern District of New York.   The consolidated member actions each allege various claims against defendants related to losses incurred by Fairfield Sentry and Greenwich Sentry investors as a result of the admitted “Ponzi scheme” orchestrated by Bernard L. Madoff. 

Plaintiffs filed a Second Consolidated Amended Complaint in October 2009. Defendants have moved to dismiss that complaint and those motions are fully briefed and have yet to be fully resolved by the Court.

Wolf Popper LLP Files Claims On Behalf of Fairfield Sentry Investors Damaged In the Bernard Madoff Ponzi Scheme

On January 8, 2009, Wolf Popper LLP filed a complaint in the U.S. District Court for the Southern District of New York on behalf of investors in the Fairfield Sentry Limited fund (“Fairfield Sentry”). The complaint alleges various claims against defendants related to losses incurred by Fairfield Sentry investors as a result of the admitted “Ponzi scheme” orchestrated by Bernard L. Madoff (“Madoff”). Substantially all of Fairfield Sentry’s assets were entrusted to Madoff. The complaint was filed against Fairfield Greenwich Group, Fairfield Greenwich Limited, Fairfield Greenwich (Bermuda) Limited, Fairfield Greenwich Advisors LLC, and 22 of the partners and board members, including Walter Noel, Jeffrey Tucker and Andres Piedrahita, for breaches of fiduciary duty, gross negligence, unjust enrichment, breach of contract, promissory estoppel, and mutual mistake. The action has been consolidated and assigned to Judge Victor Marrero.

The Complaint alleges that defendants owed investors a fiduciary duty to protect and manage the assets entrusted to them with care, diligence and the highest degree of good faith, and that they breached this duty. The Complaint further alleges that defendants were obligated by contractual terms in the August 14, 2006 Private Placement Memorandum to perform due diligence on potential fund managers and perform ongoing monitoring of existing relationships with fund managers. The complaint alleges that defendants also breached those obligations. As a direct result of defendants’ alleged unlawful conduct, investors suffered avoidable losses and defendants were unjustly enriched. 

It is estimated that Fairfield Sentry Limited had approximately $7.3 billion of investment exposure and that approximately $1.0 billion was paid in management, performance and placement fees to the Fairfield Greenwich Group and its affiliates. The complaint alleges that the defendants did not perform the necessary due diligence before placing funds that had been entrusted to their care under Bernard L. Madoff’s “management.” The complaint further alleges that because defendants did not perform this due diligence they breached their fiduciary duties and the contract created by the Private Placement Memorandum, and were unjustly enriched.

Wolf Popper LLP has extensive experience representing shareholders in class actions, and has successfully recovered billions of dollars in securities actions. If you currently hold shares of Fairfield Sentry Limited and you are interested in recovering losses or if you have information which might assist us in the investigation of these allegations, you may contact attorneys Chet Waldman, Robert Finkel, James Harrod, or Elizabeth Ferguson toll free at 877/370-7703, or via email at irrep@wolfpopper.com.

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