Victims of Bernie Madoff’s Ponzi scheme may proceed with their fraud class action against their attorney who held herself out as their courtroom “savior,” a federal court said July 19.
Judge Victor Marrero adopted the April 12 recommendation of Magistrate Judge James L. Cott to deny the motion to dismiss filed by Helen Chaitman’s two firms, Becker & Poliakoff LLP and Chaitman LLP.
The suit alleges Chaitman improperly represented clients with competing interests while at the two firms.
The case stems from the liquidation of Bernard L. Madoff Investment Securities LLC. Chaitman represented both net winners (who received more funds from the scheme than they invested) and net losers.
The two firms argued the court lacks jurisdiction. But the court agreed with the investors that the Class Action Fairness Act grant of federal jurisdiction applies.
Engstrom, Lipscomb & Lack and Stalwart Law Group represented the investors.
Kaufman Borgeest & Ryan LLP represented Chaitman LLP. Wilson Elser Moskowitz Edelman & Dicker LLP and Lewis, Brisbois, Bisgaard & Smith LLP represented Becker & Poliakoff LLP.
The case is Shulman v. Chaitman LLP, 2019 BL 267109, S.D.N.Y., No. 17-9330, 7/19/19.
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