Federal Judge Denies Motion to Dismiss in Woodbridge Investments Litigation
On August 5, 2020, U.S. District Judge Dolly M. Gee denied in substantial part Comerica Bank’s motion to dismiss investor claims arising out of a $1.2 billion Ponzi scheme operated by Robert Shapiro through his “Woodbridge” real estate investment companies.
Plaintiffs allege Comerica is liable for aiding and abetting misconduct by Shapiro and Woodbridge.
The court denied Comerica’s motion to dismiss plaintiffs’ claims for aiding and abetting fraud and breach of fiduciary duty, upholding plaintiffs’ allegations of the close relationship between Comerica and Shapiro, flaws in Woodbridge’s business model, and Comerica ignoring red flag warnings relating to the massive fraud.
A copy of the order can be accessed here.