Lancer receiver/class plaintiffs settle with CITCO for $5M
Settlement motion filed 31st August in 09cv80612 in USDC S.Fla
This follows long, expensive & ultimately not very successful litigation against CITCO entities & individuals who served as directors of Lancer Offshore etc. Substantial elements of the complaints were dismissed.
That seems to be pretty much it except for some remaining bits & pieces. Summarising:
- PWC as Offshore's auditor settled a few years ago for ummmm $25M or something like that.
-The auditor for the US Lancer operation settled for peanuts.
- CITCO & its officers who formed the board of Lancer Offshore, while the manager indulged in blatant fraud easily discovered with perhaps 4 hours of desk-diligence, will settle for $5M.
- Receiver Marty Steinberg and his firm Hunton & Williams and professionals hired by them have spent 8 years and charged eleventy-gadzilllion dollars to the estate in order to accomplish these negligble outcomes, plus some other bits and pieces. (The actual costs can be calculated from recent filings in the case, for anybody with a strong enough stomach.) An image which springs to mind is Monty lumbering in torpid pursuit of Rommel after Alamein.
- Michael Lauer was found innocent.
- No action appears to have been taken against any of the most important malefactors - ie the professionals who invested into this snakepit money belonging to people towards whom they had a fiduciary responsibility - at best without any real diligence or understanding of the hugely flawed nature of management agreements and governance arrangements; at worst, one suspects, in return for kickbacks.