New York Securities Lawyer Blog
Hundreds of Madoff Victims have been named as defendants in Bernard L. Madoff Securities, LLC (“BLMIS”) Adversarial Proceeding Clawback actions. Irving Picard, the BLMIS Trustee, filed the Clawback complaints alleging avoidance claims and preference claims on or before December 11, 2010. Pursuant to the Federal Rules of Civil Procedure, the Trustee has 120 days from the date of filing the Clawback complaint with the Southern District Court in New York, to serve the named defendant. It is our understanding that approximately 50% of all Clawback actions have been served upon the named defendants. Many of the named Defendants who have not yet been served with the Clawback complaint question whether all of the Clawback actions that were filed by the Trustee will actually be served or if the Trustee will abandon or stop pursuing some of the Clawback complaints. Through our communications with the Trustee it is our belief that all filed Clawback complaints will eventually be served upon the defendants. Once the defendant is served, the defendant either has 30 or 60 days to respond to the Clawback complaint. Although this time to respond is designated in the summons which is served along with the Clawback complaint, it is possible to receive an extension of time to respond through a request to the Trustee. If you have been named as a Defendant in a Clawback complaint or served with a Clawback complaint, feel free to contact Lax & Neville, LLP for a consultation regarding your potential defenses.