Woodbridge Liquidation Trust (the “Trust”) agreed to the terms of a settlement of two pending actions against Comerica Bank. The terms of the settlement, reached following negotiations with Comerica Bank and the plaintiffs in a putative class action against Comerica Bank in the United States District Court for the Central District of California (the “District Court”), are the subject of a Settlement Agreement among the plaintiffs, Comerica Bank, and the Trust (the “Settlement Agreement”).

Comerica Bank is the institution at which Woodbridge Group of Companies, LLC and its affiliated debtors in bankruptcy (the “Debtors”) maintained all of their bank accounts,
and these actions arise out of the Debtors’ former banking relationships with Comerica Bank.

The Settlement Agreement resolves two actions. One of the actions, captioned In re Woodbridge Investments Litigation, Case No. 2:18-cv-00103-DMG-MRW (C.D. Cal.), is a
consolidated putative class action in District Court brought on behalf of former noteholders and unitholders of the Debtors (the “California Class Action”).

The California Class Action is comprised of five separate lawsuits filed between January 4, 2018 and April 26, 2018 and, as consolidated, asserted claims for aiding and abetting fraud, aiding and abetting breach of fiduciary duty, negligence, and violations of California’s unfair competition law. The Trust believes that it is the largest member of the putative class in the California Class Action, as holder of approximately 60.9% of all claims against Comerica based on the claims contributed to the Trust by former investors of the Debtors.

The other action resolved by the settlement, captioned Michael I. Goldberg as trustee for the Woodbridge Liquidation Trust v. Comerica Bank, Adv. Pro. No. 20-ap-50452-BLS
(Bankr. D. Del.), is an adversary proceeding pending in the United States Bankruptcy Court for the District of Delaware, in which the Trust has asserted claims against Comerica Bank for
fraudulent transfers under the California Civil Code

Under the Settlement Agreement, Comerica Bank has agreed to pay (including through its insurers) an aggregate of $54.5 million, consisting of $54.2 million to settle the
California Class Action (the “Class Payment”) and $300,000 to settle the Delaware Adversary Action (the “FT Payment”). The Class Payment is intended to provide recoveries to
members of the plaintiff class and to fund, in amounts to be determined by the District Court, the legal fees of plaintiffs’ counsel in the California Class Action, not to exceed 25% of the
California Class Action settlement payment, the costs of administering the settlement, and certain incentive award for the class representatives. Under the Settlement Agreement,
Comerica Bank (and certain related parties) is required to be released from all claims advanced, or that could have been advanced, related to the facts alleged in the California Class Action or the Delaware Adversary Action.

The settlement amount is to be paid within ten business days of the Settlement Effective Date (as defined in the Settlement Agreement).

Published by Greg W. Anderson

CEO and founder of Balanced Financial Inc.

25 thoughts on “$54.5 Million Just Came in!”

  1. Again,thank you for your updates! If we receive a settlement from Comerica, will we still receive more from Woodbridge? They haven’t followed the distribution pattern they set last year.

    Like

    Reply

  3. Yea!! Now I wonder what’s happening with Shapiro’s assets the FBI collected. Hopefully we will see some of that as well! Thank you for update.

    Like

    Reply

  4. Mr. Anderson, in plane English what does that mean for us financially and how will this affect the other lawsuits. Thanks Danny Carney

    Sent from my iPhone

    >

    Like

    Reply

  5. Just received notice of class action settlement in the mail. Should the cost of administration and the extra payments made to class representatives be deducted only from the claimants who did NOT contribute their claims to the Trust? Everybody is receiving the benefit.

    I always appreciate your updates.

    Like

    Reply

  6. Thank you Greg! This sounds like good news but I am not sure what that entails to us investors. My investment adviser on this was john Fisher of Lifeco. Insurance. You have provided me far more information about the Woodbridge wealth fiasco than this individual has provided.

    Like

    Reply

  8. Has anyone asked the question “When will we see money due to the Comerica lawsuit?” It was two months ago that they had to pay up.

    Like

    Reply

      1. Case was in court December 17, 2021. That was the final.
        Also I talked to IRS on money government owes me. I filed Safe Harbor form 2009-20 11/19/2019. I was told they are almost 2 1/2 years behind. They have my paper work and it was just put in computer June of 2021.
        I appreciate all your updates

        Like

      1. Hi Greg, I just received my latest Woodbridge statement, and the unit value of the Class A shares went from $13 to $9.28. Do you have any idea what caused this?

        Thanks, Gordon

        Like

      2. I do NOT know how they ‘value’ these shares at all.
        I spoke back in June to that Colin Robinson and offered exactly zero reasoning, math, equation, etc. No clues as to the “valuation”. So contact him with your question and as for the math behind this number.

        Like

  9. Hi, Gordon and Greg. I look at the Woodbridge page EVERY day, and this valuation has been the same for a few weeks. I don’t know why or how this affects us.

    Like

    Reply

    1. when i spoke to Colin in June he seemed to indicate they are creating low valuations so folks don’t have to do large RMD’s if they are over age 72.
      that seems to be the motivation as opposed to some truly accurate share price

      Like

      Reply

Leave a comment