Clawback Seen a Likely Tactic to Recover Madoff-Related Distributions

February 18, 2009. Early participants in funds that invested with the allegedly Ponzi-schemer Bernard L. Madoff are bracing for possible "clawback" lawsuits, according to an article in the Los Angeles Times. The article, published on February 16 and headlined "Alleged Madoff Victims May Be Vulnerable To Other Victims' Claims" quotes Morrison Cohen securities litigation partner Donald H. Chase, saying: "Anything withdrawn within 90 days of the bankruptcy filing most certainly would be targeted. Beyond that, what everyone is bracing for, if you take the Bayou case as an example and blueprint, is the [Madoff] trustee filing claims against anyone who redeemed or received profits in the last six years."