GEABP, led by partner Michael Devorkin, brought a putative class action in New York federal court on behalf of non-California victims of a Ponzi scheme that sold non-existent ATM machines for 15 years stealing millions of dollars. On January 29, 2019, GEABP, working with several California law firms, who brought suits in California to represent a nationwide class of 1,350 victims, obtained final court approval in California of a settlement of $33.55 million, which resolves both the California and New York cases. The Court found that the victims will recover approximately 46% of their losses, including other funds collected for the victims by a receiver for the fraudster company, and it congratulated counsel for providing “meaningful relief for investors who lost money,” which is “exponentially more than the typical result” in similar cases. The Court’s decision and notice can be found at this link.
The Firm’s Complex Business Fraud Litigation Group actively represents Ponzi scheme victims and other victims of financial fraud or professional misconduct in similar cases.