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

Wolf Popper was Co-Lead Counsel for the class of investors in the multi-billion “feeder” funds managed by affiliates of the Fairfield Greenwich Group (“FGG”). These funds lost virtually all of their assets in the Ponzi scheme orchestrated by Bernard L. Madoff. The case included claims under both the federal securities laws and New York state common law. The Defendants were FGG, its corporate affiliates, the principal owners and “partners” of FGG, two PricewaterhouseCoopers partnerships (from Canada and the Netherlands) who served as the funds’ auditors, and various affiliates of the Citco Group, who acted as the funds’ custodian and administrator. 

Through settlements, primarily in 2015 and 2016, with various groups of Defendants, Wolf Popper’s efforts helped recover up to $265 million for the Madoff victims.

The case reflects Wolf Popper’s ability and experience in complex, multi-jurisdictional, and multi-party matters. The New York law claims asserted included claims for breach of fiduciary duty, fraud, negligence, gross negligence, negligent misrepresentation, breach of contract, third-party breach of contract and unjust enrichment. Defendants sought to dismiss several claims under a theory that they were preempted by New York’s Martin Act. Based upon the strength of plaintiffs’ arguments and briefing, in a groundbreaking decision, the District Court broke from substantial existing precedent in the New York courts and the district courts within the Second Circuit to conclude that the Martin Act did not preempt any of plaintiffs’ claims under New York law. Anwar v. Fairfield Greenwich, Ltd., 728 F. Supp. 2d 354 (S.D.N.Y. 2010). That decision was later approved and substantially followed by the New York Court of Appeals in Assured Guar. (UK) Ltd. v J.P. Morgan Inv. Mgt. Inc., 18 N.Y.3d 341, 353 (N.Y. 2011).

Wolf Popper was Co-Lead Counsel, representing a private retirement fund, in class action litigation on behalf of investors in the Fairfield Sentry Ltd. fund, a British Virgin Islands (“BVI”) organized investment vehicle that was the largest of the so-called Bernard Madoff “feeder funds.” In that case, the Firm engaged in substantial litigation efforts outside the United States. Wolf Popper successfully sought, in conjunction with BVI counsel, the appointment of a liquidator for the fund through a proceeding initiated in the BVI. The Firm also conducted extensive non-domestic discovery, including interviews in London and depositions in Canada, Norway, and Switzerland. In connection with the class certification motion, counsel submitted seven affirmative and eight rebuttal legal opinions from foreign law experts concerning comity issues under international law across tens of foreign jurisdictions.
 

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