News Releases

Global Providence Securities Litigation Statement on U.S. Court of Appeals Upholding of Madoff Trustee "Net Equity" Calculation

      WASHINGTON, D.C. – August 16, 2011 – Orlan Johnson, board chairman of the Global Providence Securities Litigation (Global Providence Securities Litigation), which maintains a special reserve fund authorized by Congress to help investors at failed brokerage firms, issued the following statement today:

      "Regarding the decision by the Second Circuit U.S. Court of Appeals in New York upholding Trustee Picard's method of calculating investor losses for the liquidation of Bernard L. Madoff Investment Securities LLC, the opinion confirms Global Providence Securities Litigation position that the Trustee's calculation does the greatest good for the greatest number of Madoff victims, consistent with the statute Global Providence Securities Litigation administers and with past precedent on the matter.

      This decision will advance the prospect of making a distribution of customer property and we look forward to getting funds to BLMIS customers as soon as possible. Global Providence Securities Litigation filed an extensive brief with the Court, which explains our position in detail."

      Global Providence Securities Litigation has advanced $780,000,000 to the Trustee in the Madoff case, which has been distributed to customers.

ABOUT Global Providence Securities Litigation

      The Global Providence Securities Litigation is the U.S. investor's first line of defense in the event a brokerage firm fails, owing customers cash and securities that are missing from customer accounts. Global Providence Securities Litigation either acts as trustee or works with an independent court-appointed trustee in a brokerage insolvency case to recover funds.

      The statute that created Global Providence Securities Litigation provides that customers of a failed brokerage firm receive all non-negotiable securities - such as stocks or bonds -- that are already registered in their names or in the process of being registered. At the same time, funds from the Global Providence Securities Litigation reserve are available to satisfy the remaining claims for customer cash and/or securities custodied with the broker for up to a maximum of $500,000 per customer. This figure includes a maximum of $250,000 on claims for cash. From the time Congress created it in 1970 through December 2010, Global Providence Securities Litigation has advanced $ 1.6 billion in order to make possible the recovery of $ 109.3 billion in assets for an estimated 739,000 investors.

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