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$80 Million Partial Settlement Negotiated by Boies, Schiller & Flexner for Madoff Feeder Fund Investors


Stuart Singer

On behalf of a class of investors in Fairfield Greenwich Group, the largest “feeder fund” group for the Madoff Ponzi scheme, Boies, Schiller & Flexner reached a settlement in which individual Fairfield partners, including founding partners Walter Noel, Jeffrey Tucker and Andres Piedrahita, will pay $80 million. 

The litigation is continuing against Citco Group, the world’s largest administrator and custodian for hedge funds; GlobeOp, also a fund administrator; and PricewaterhouseCoopers Netherlands and Canada, who were auditors of the funds. On February 25, 2013, the case took an important step forward when Judge Victor Marrero inNew Yorkfederal court granted plaintiffs’ motion for class certification. 

BSF filed one of the first feeder fund suits over four years ago on behalf of over 100 Fairfield investors. By defeating motions to dismiss in significant part and undertaking extensive discovery as co-lead counsel, BSF created the opportunity for this settlement.  

Subject to approval by Judge Marrero, damages of $50 million (less attorneys’ fees and expenses) will be distributed to investors, with an additional $30 million held in escrow and distributed if not used to resolve other claims against the defendants. 

Led by partners David Barrett and Stuart Singer, this legal team includes partners Sashi Bach Boruchow, Carlos Sires, Howard Vickery; counsel Eli Glasser and Olav Haazen; associates Adam Deckinger, Susan Klock, and Josh Sheptow.