A proposed class of investors told a California federal judge Friday they’ve reached a $54.2 million deal with Comerica Bank in a suit over an alleged Ponzi scheme by Woodbridge Group after accusing the bank of turning a blind eye to the plot. “We are very pleased with the recovery for investors,” said Jeffrey Sonn, Esq., cocounsel for the investor class. “Proving aiding and abetting fraud is never easy, and the settlement reflects a fair settlement for the investors in light of the risks in the case,” added Sonn. The court approved the deal, and nearly 8000 investors were paid. The deal included payouts to investors based on a formula that includes the investor’s outstanding unpaid principal minus all pre-bankruptcy distributions, and would cover a period that runs from July 1, 2012, to Dec. 4, 2017, which was just before Woodbridge filed for bankruptcy.
I'm Jeff Sonn, an attorney concentrating on securities fraud and consumer class actions. I use this blog to bring attention to regulatory filings involving financial advisors, current events in securities and cases in the financial services industry, and to help investors understand their rights and options for financial recovery. Questions? Contact me online or call anytime at 844-689-5754