Woodbridge Group of Companies
The firm is counsel to the creditors' committee in the Woodbridge Group of Companies LLC's chapter 11 bankruptcy filed in Delaware. Woodbridge, a web of over 150 related entities, was owned and controlled by its founder, Robert Shapiro, and operated as a real estate finance and development company that bought, improved and sold high-end luxury homes. To fund its operations, Woodbridge fraudulently raised over $1 billion in capital through full-service real estate brokerages through which unregistered brokers solicited funds from individuals. The company and its founder faced multiple investigations by the SEC and state-regulatory agencies for the unlawful selling of securities that precipitated the company’s bankruptcy filing. Shortly after its appointment, the committee filed a motion to appoint a chapter 11 trustee, which resulted in a global resolution by and among the debtors, the SEC and certain ad hoc committees representing defrauded investors. The committee’s efforts caused, among other things, the resignation of the chief restructuring officer and independent manager hand-picked by the debtors’ founder on the eve of bankruptcy, the election of a new board of managers with the committee’s direct input, and the stay of a receivership action initiated by the SEC to gain control over the company.
