Woodbridge Liquidation Trust (WBQNL)

[Enterprising Investor]

Settlement (7/06/23)

On June 29, 2023, Woodbridge Liquidation Trust (the “Trust”) agreed to settle its pending litigation against the defendant law firm Halloran & Sage LLP and its partner Richard P. Roberts in the case of Goldberg v. Halloran & Sage LLP, et al., Case No. 19STCV42900 (Cal. Super. Ct., L.A. Ctny.) (the “Action”). In the Action, which commenced on December 2, 2019, the Trust asserted claims against Robert Shapiro’s former legal counsel for aiding and abetting securities and other fraud, aiding and abetting breach of fiduciary duty, negligent misrepresentations, professional negligence, and aiding and abetting conversion. The terms of the settlement are contained in a settlement agreement among Halloran & Sage LLP, Mr. Roberts, and Michael Goldberg as Liquidation Trustee on behalf of the Trust.

Under the agreement, the Trust has agreed to dismiss its claims against Halloran & Sage LLP and Mr. Roberts in exchange for the remaining amount of the law firm’s applicable liability insurance policies. Such amount is expected to result in proceeds to the Trust of approximately $13 million, net of attorneys’ fees and other litigation expenses.

The settlement is subject to the California Superior Court granting a motion by Halloran & Sage LLP for a court order finding that the settlement has been made by the parties in good faith. Payment of the settlement amount is due within 21 days of such order being entered.

The settlement agreement relates to the Trust’s claims only against defendants Halloran & Sage and Mr. Roberts and does not effect a release of the Trust’s claims against any of the other defendants in the Action. No assurance can be given that the recovery, if any, by the Trust against any other defendant or defendants in the Action will realize a comparable amount or be obtained on similar terms.

https://www.sec.gov/ix?doc=/Archives/edgar/data/1785494/000114036123033400/brhc20055576_8k.htm