Woodbridge Liquidation Trust (WBQNL)

[Enterprising Investor]

Settlement (11/10/23)

As of November 10, 2023, Woodbridge Liquidation Trust entered into a definitive written agreement to settle its pending litigation against the defendant law firm Rome McGuigan P.C. and attorney Brian Courtney in the cases of Goldberg v. Halloran & Sage LLP, et al., Case No. 19STCV42900 (Cal. Super. Ct., L.A. Ctny.), which commenced on December 2, 2019, and Goldberg v. Rome McMGuigan, P.C., et al., Case No. CV 20-9958-JFW(SK) (U.S. Dist. Ct. Cent. Dist. Cal.), which commenced October 28, 2020 (the “Actions”). In the Actions, the Trust asserted claims against Robert Shapiro’s former legal counsel for aiding and abetting securities fraud, aiding and abetting conversion, aiding and abetting common-law fraud, aiding and abetting breach of fiduciary duty, professional negligence, and negligent misrepresentation. The terms of the settlement are contained in a Settlement Agreement and Mutual Release among Rome McGuigan P.C., Mr. Courtney, and Michael Goldberg as Liquidation Trustee on behalf of the Trust.

Under the agreement, the Trust has agreed to dismiss its claims against Rome McGuigan P.C. and Mr. Courtney for $5,000,000. Such amount is expected to result in proceeds to the Trust of approximately $3,313,000 million, net of attorneys’ fees and other litigation expenses.

The settlement is subject to the California Superior Court granting a motion by Rome McGuigan P.C. and/or Mr. Courtney for a court order finding that the settlement has been made by the parties in good faith (unless such condition is waived in writing by both Rome McGuigan P.C. and Mr. Courtney). Payment of the settlement amount is due within 30 days after such order being entered.

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

https://www.sec.gov/ix?doc=/Archives/edgar/data/1785494/000114036123053511/ef20014723_8k.htm