S&W Wins Dismissal of $59 Billion in RICO Claims Brought by Madoff Trustee
U.S. District Judge Jed Rakoff dismissed racketeering claims against Sullivan & Worcester client Bank Austria, handing the bank another victory in a lawsuit filed by the Madoff bankruptcy trustee.
Approximately $59 billion in claims were dismissed against our client Bank Austria, Bank Austria's corporate parent UniCredit S.p.A., sister company Pioneer Global Management S.p.A, and the former CEO of UniCredit, Alessandro Profumo. Judge Rakoff ruled that the Trustee's RICO claims should be dismissed because the Trustee lacked standing to pursue the claims, the claims were barred by the Private Securities Litigation Reform Act ("PSLRA"), and that in any event the Trustee's pleadings failed to state actionable claims.
This is the firm's third major victory on behalf of Bank Austria in the Madoff litigations. Last summer, S&W obtained the dismissal of approximately $6 billion in common law claims asserted by the Madoff Trustee against Bank Austria and others. Also, in December, S&W obtained the dismissal of two class actions against the Bank.
The S&W team was led by Mitchell C. Stein.