On March 16, 2011, Judge Daniels in the Southern District of New York approved the plan of distribution supported by Gibbs & Bruns client Carnegie Mellon University in the $815 million Westridge Capital receivership case, SEC v. WG Trading Investors, L.P. et al., 09-CIV-1750 (S.D.N.Y). In a hearing on March 16th, Gibbs & Bruns partner Scott Humphries, representing the firm’s client Carnegie Mellon University and speaking on behalf of 16 similarly situated institutional investors, responded to numerous investors’ objections to the Receiver’s proposed plan and to proposed alternate plans, some of which sought to distribute virtually all the receivership’s assets to objecting investors. After an all-day argument, Judge Daniels overruled the objections and approved the proposed plan from the bench. The court’s order, expected to be signed Monday, could result in a substantial distribution to Carnegie Mellon University in as little as 30 days.
