Part of Case vs. Mets Owners Tossed

September 27, 2011 – In The News

Michael J. Kline commented on the pending case between the owners of the New York Mets, Fred Wilpon and his family, and the trustee of the victims of the Bernard Madoff Ponzi scheme, Irving Picard.

Picard sued the Wilpon family to recover roughly $300 million in alleged "fictitious profits" and $700 million in principal, alleging they knew fraud was occurring.

Judge Jed S. Rakoff said Picard can seek to recover $295 million in fictitious profits that he claims were paid to the Mets' owners during the time of the fraud, but said he has not decided if Picard can pursue the full amount of $295 million sought by Picard or only $83.3 million, the amount asserted by Picard to have been distributed to the Mets' owners in the two years before the Madoff bankruptcy filing occurred.

Kline said it would be a matter of law whether the statute of limitations allows Picard to recover the full $295 million or the lesser amount, $83 million.

Kline believes Picard may settle as to not jeopardize larger cases. "An adverse result with the Wilpons could affect other large clawback cases that Picard has pending."

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