Woodbridge Investments Litigation (Class Action vs. Comerica Bank, Case No 18-00103-dmg-ks, Central District of California)
This consolidated action (against Comerica Bank) is a putative class action brought on behalf of investors in the Woodbridge Group of Companies (collectively, “Woodbridge”), asserting claims against Comerica Bank (“Comerica”) for its alleged role in the Woodbridge Ponzi scheme.
On June 18, 2018, this Court granted the parties’ joint motion to stay all further proceedings pending an order from the U.S. Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) on the class plaintiffs’ anticipated motion to lift the bankruptcy stay in the related Woodbridge Bankruptcy, and ordered the parties to submit a status report by December 14, 2018.
Accordingly, the parties respectfully submit the following update:
- On October 26, 2018, the Bankruptcy Court entered an order confirming the Woodbridge Chapter 11 plan of liquidation. Counsel for debtors have represented that they anticipate emerging from Chapter 11 bankruptcy, and commencing initial cash distributions, in the first quarter of 2019.1
- Class plaintiffs presently anticipate moving to lift the Bankruptcy Court stay no later than February 1, 2019. Comerica intends to oppose.
The parties do not request any further action from the Court at this time, and jointly propose filing a further status report with this Court on March 15, 2019. If the Bankruptcy Court lifts the injunction preliminarily enjoining this consolidated action before that date, the parties will file a joint notice with this Court within seven (7) days.