Court Approves $54 Million Settlement Between Comerica and Ponzi Scheme Investors

Posted on September 15th, 2021 at 3:59 PM
Court Approves $54 Million Settlement Between Comerica and Ponzi Scheme Investors

From the Desk of Jim Eccleston at Eccleston Law:

A California federal judge has initially approved a $54.2 million agreement between Comerica Bank and a class of about 8,000 investors, who accused the bank of abetting a Ponzi scheme by Woodbridge Group. Nearly 61% of the class are members of the Woodbridge Liquidation Trust while the rest are individual investors, according to the motion for approval. 

The agreement pays aggrieved investors based on a formula, which calculates the investor’s outstanding unpaid principal minus all pre-bankruptcy distributions. The settlement reaches the limits of Comerica’s insurance coverage, according to a source familiar with the matter. The investors obtained class certification in April after accusing Comerica of aiding and abetting the Woodbridge scheme by ignoring Woodbridge’s history of fraud, a notice of investigations by regulators as well as alerts from its proprietary fraud detection system. 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, settlement, ponzi, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next

Thank you for your professional assistance with this matter. You are very good at what you do.

John T.

LATEST NEWS AND ARTICLES

April 15, 2024
Commonwealth Financial Network Faces Potential Damages Amid SEC Lawsuit

Commonwealth Financial Network is under fire, as it faces potential damages amounting to $111.5 million from a Securities and Exchange Commission (SEC) complaint filed nearly five years ago.

April 12, 2024
FINRA Penalizes Ex-Raymond James Advisor for Document Alterations

A former Raymond James financial advisor faced a $5,000 fine and a four-month suspension from the Financial Industry Regulatory Authority (FINRA) for allegedly falsifying 25 documents, as per a settlement letter released recently.

April 11, 2024
Cantor Fitzgerald LP Sues Former Bankers Over Alleged Client Poaching

Cantor Fitzgerald LP has initiated legal action against PEI Global Partners Holdings LLC, a firm founded by a group of its former investment bankers, alleging the illicit solicitation and theft of valuable clients, potentially worth millions of dollars in profit.