FutureSelect Portfolio Management v. Ernst & Young

Summary

A Washington State court jury sided with investors on Friday who lost $112 million dollars in Bernie Madoffs historic Ponzi scheme in their lawsuit against Ernst & Young LLP, finding that the accounting giant was negligent by signing off on audits of billions in assets that didnt exist.

Fridays verdict marks the first time a jury has weighed in on the role accounting practices played in contributing to losses suffered by investors who sank money into Madoff-controlled funds. The jury awarded approximately $20.3 million in damages to FutureSelect Portfolio Management Inc. while also finding the investment firm to be 50 percent responsible for its own losses. The actual damages amount will be reduced to $10.15 million, though FutureSelects attorney Steven Thomas told Courtroom View Network that pre-judgment interest will push the amount back above $20 million.

Click here for more in-depth coverage via the CVN News Blog.

Outcome

Total damages: $20.3 million

Percentage of responsibility:
FutureSelect - 50%
Ernst & Young - 50%

Actual damages awarded: $10.15 million

Case Information

Attorneys

Witnesses

Plaintiff: Futureselect Portfolio Management Inc.
Defense: Ernst & Young

Judge: Beth Andrus
Jurisdiction: Washington State Superior Court, King County
Court: King County Superior Court

Case Number: 10-2-30732-0
Industry: Finance, Accounting
Practice Area: Financial Services, Securities

Plaintiff

Futureselect Portfolio Management Inc.

Defense

Ernst & Young

Expert Witnesses

Lay Witnesses

Sessions

Attorney

Witness

Type

Description

AM Session

Openings

6 Chapters

	Description	Attorney
00:00:00	General Case Activities
00:02:31	Opening Statement	Thomas, Steven
00:19:32	Break
00:34:33	Opening Statement	Thomas, Steven
01:42:57	General Case Activities
01:45:49	End of Session

PM Session

Plaintiff Witness(es)

7 Chapters

OCT

AM Session

Plaintiff Witness(es)

4 Chapters

	Description	Attorney	Witness	Presence
00:00:00	Witness Direct Examination	Thomas, Steven	Guy, Dr. Dan Ph.D., CPA	In Person
01:20:14	Break
01:44:37	Witness Direct Examination	Thomas, Steven	Guy, Dr. Dan Ph.D., CPA	In Person
02:48:45	End of Session

PM Session

Plaintiff Witness(es)

2 Chapters

			Description	Attorney	Witness	Presence
		00:00:00	Witness Direct Examination	Thomas, Steven	Guy, Dr. Dan Ph.D., CPA	In Person
		00:36:12	End of Session

OCT

AM Session

Plaintiff Witness(es)

6 Chapters

PM Session

Plaintiff Witness(es)

7 Chapters

OCT

AM Session

Plaintiff Witness(es)

7 Chapters

PM Session

Plaintiff Witness(es)

5 Chapters

OCT

PM Session

Plaintiff Witness(es)

8 Chapters

AM Session

Plaintiff Witness(es)

4 Chapters

OCT

AM Session

Plaintiff Witness(es)

6 Chapters

PM Session

Plaintiff Witness(es)

4 Chapters

	Description	Attorney	Witness	Presence
00:00:00	Witness Direct Examination	Alexander, Emily	Ward, Ron	In Person
00:49:46	Break
01:23:11	Witness Direct Examination	Alexander, Emily	Ward, Ron	In Person
02:11:32	End of Session

OCT

AM Session

Plaintiff Witness(es)

5 Chapters

	Description	Attorney	Witness	Presence
00:00:00	Witness Direct Examination	Alexander, Emily	Ward, Ron	In Person
00:33:25	Witness Cross Examination	Bennett, James	Ward, Ron	In Person
01:32:21	Break
02:00:58	Witness Cross Examination	Bennett, James	Ward, Ron	In Person
02:59:39	End of Session

OCT

AM Session

Plaintiff Witness(es)

4 Chapters

	Description	Attorney	Witness	Presence
00:00:00	Witness Cross Examination	Bennett, James	Ward, Ron	In Person
01:19:02	Break
01:37:37	Witness Cross Examination	Bennett, James	Ward, Ron	In Person
02:48:41	End of Session

PM Session

Plaintiff Witness(es)

7 Chapters

	Description	Attorney	Witness	Presence
00:00:00	Witness Cross Examination	Bennett, James	Ward, Ron	In Person
00:12:02	Witness Re-Direct Examination	Alexander, Emily	Ward, Ron	In Person
00:42:52	Witness Re-Cross Examination	Bennett, James	Ward, Ron	In Person
00:58:36	General Case Activities		Ward, Ron	In Person
01:03:03	Break
01:22:53	Witness Direct Examination		Deneso,	Video Recording
02:25:39	End of Session

OCT

AM Session

Plaintiff Witness(es)

6 Chapters

	Description	Attorney	Witness	Presence
00:00:00	Witness Direct Examination		Deneso,	Video Recording
01:09:49	Break
01:45:01	Witness Direct Examination		Deneso,	Video Recording
01:48:51	Witness Direct Examination	Thomas, Jeffrey	Vassallo, Salvatore "Tony"	In Person
02:18:08	Witness Cross Examination	Levitt, Jamie	Vassallo, Salvatore "Tony"	In Person
02:45:19	End of Session

PM Session

Plaintiff Witness(es)

7 Chapters

OCT

PM Session

Defense Witness(es)

6 Chapters

	Description	Attorney	Witness	Presence
00:00:00	Witness Cross Examination	Thomas, Steven	O' Bryan, Dr. John	In Person
01:04:03	Break
01:29:03	Witness Cross Examination	Thomas, Steven	O' Bryan, Dr. John	In Person
02:09:21	Witness Re-Direct Examination	Bennett, James	O' Bryan, Dr. John	In Person
02:32:37	General Case Activities		O' Bryan, Dr. John	In Person
02:37:13	End of Session

AM Session

Defense Witness(es)

2 Chapters

			Description	Attorney	Witness	Presence
		00:00:00	Witness Cross Examination	Thomas, Steven	O' Bryan, Dr. John	In Person
		00:59:54	End of Session

OCT

AM Session

Defense Witness(es)

8 Chapters

	Description	Attorney	Witness	Presence
00:00:00	Witness Direct Examination	Hubbell, Robert	Forstenhausler, Matt	In Person
00:54:54	Witness Cross Examination	Thomas, Steven	Forstenhausler, Matt	In Person
01:11:23	Break
01:32:35	Witness Cross Examination	Thomas, Steven	Forstenhausler, Matt	In Person
02:05:53	Witness Re-Direct Examination	Hubbell, Robert	Forstenhausler, Matt	In Person
02:13:40	General Case Activities		Forstenhausler, Matt	In Person
02:16:39	Witness Direct Examination	Hubbell, Robert	LoParrino, Michael	In Person
02:43:37	End of Session

PM Session

Defense Witness(es)

5 Chapters

	Description	Attorney	Witness	Presence
00:00:00	Witness Direct Examination	Hubbell, Robert	LoParrino, Michael	In Person
00:27:54	Witness Cross Examination	Thomas, Steven	LoParrino, Michael	In Person
00:56:01	Break
01:28:54	Witness Cross Examination	Thomas, Steven	LoParrino, Michael	In Person
02:25:33	End of Session

NOV

AM Session

Defense Witness(es)

6 Chapters

PM Session

Defense Witness(es)

10 Chapters

	Description	Attorney	Witness	Presence
00:00:00	Witness Re-Direct Examination	Levitt, Jamie	Stulz, René	In Person
00:08:18	Witness Re-Cross Examination	Thomas, Steven	Stulz, René	In Person
00:20:24	General Case Activities		Stulz, René	In Person
00:31:10	Witness Cross Examination	Thomas, Steven	LoParrino, Michael	In Person
00:48:48	Witness Re-Direct Examination	Hubbell, Robert	LoParrino, Michael	In Person
01:04:19	Break
01:32:40	General Case Activities		LoParrino, Michael	In Person
01:34:46	Witness Direct Examination		Nicoll, Cynthia	Video Recording
02:03:40	Witness Direct Examination		Lynch, Michael	Video Recording
02:21:58	End of Session

NOV

AM Session

Defense Witness(es)

2 Chapters

			Description	Attorney	Witness	Presence
		00:00:00	Witness Direct Examination	Bennett, James	Richmond, Andrew	Other
		00:49:38	End of Session

PM Session

Defense Witness(es)

6 Chapters

	Description	Attorney	Witness	Presence
00:00:00	Witness Direct Examination	Bennett, James	Richmond, Andrew	In Person
00:51:46	Break
01:11:56	Witness Cross Examination	Thomas, Steven	Richmond, Andrew	In Person
01:54:20	Witness Re-Direct Examination	Bennett, James	Richmond, Andrew	In Person
02:05:18	Witness Re-Cross Examination	Thomas, Steven	Richmond, Andrew	In Person
02:21:33	End of Session

NOV

AM Session

Defense Witness(es)

5 Chapters

PM Session

Defense Witness(es)

10 Chapters

	Description	Attorney	Witness	Presence
-2:06:02	Witness Direct Examination	Bennett, James	Tucker, Avram	In Person
-2:39:22	Witness Cross Examination	Forrester, Mark	Tucker, Avram	In Person
-2:50:36	Break
-1:07:55	Witness Cross Examination	Forrester, Mark	Tucker, Avram	In Person
-1:30:06	Witness Re-Direct Examination	Bennett, James	Tucker, Avram	In Person
-1:34:36	Witness Re-Cross Examination	Forrester, Mark	Tucker, Avram	In Person
-1:40:18	General Case Activities		Tucker, Avram	In Person
-1:45:59	Witness Direct Examination	Forrester, Mark	Mukamal, Barry	In Person
00:08:22	Witness Cross Examination	Bennett, James	Mukamal, Barry	In Person
00:18:24	End of Session

NOV

AM Session

Defense Witness(es)

8 Chapters

	Description	Attorney	Witness	Presence
00:00:00	Witness Cross Examination	Bennett, James	Mukamal, Barry	In Person
00:33:34	Witness Re-Direct Examination	Forrester, Mark	Mukamal, Barry	In Person
00:38:05	Break
01:04:04	Witness Re-Direct Examination	Bennett, James	Mukamal, Barry	In Person
01:06:12	Witness Re-Cross Examination	Forrester, Mark	Mukamal, Barry	In Person
01:14:28	General Case Activities		Mukamal, Barry	In Person
01:19:04	Witness Direct Examination		Brown, Art	Video Recording
01:32:40	End of Session

PM Session

Defense Witness(es)

2 Chapters

NOV

AM Session

Closings

5 Chapters

PM Session

Closings

5 Chapters

NOV

AM Session

Closings

6 Chapters

NOV

PM Session

Other

2 Chapters

NOV

AM Session

Verdict

3 Chapters

NOV

FutureSelect Portfolio Management v. Ernst & Young

Summary

Outcome

Sessions

AudioCaseFiles

Essentials

Training Libraries

	Description	Attorney	Witness	Presence
00:00:00	General Case Activities
00:00:16	Opening Statement	Bennett, James
01:31:57	Break
01:59:12	General Case Activities
02:00:43	Witness Direct Examination	Thomas, Steven	Guy, Dr. Dan Ph.D., CPA	In Person
02:53:24	General Case Activities
02:54:25	End of Session

	Description	Attorney	Witness	Presence
00:00:00	General Case Activities
00:08:52	Break
00:58:16	Witness Direct Examination	Thomas, Steven	Guy, Dr. Dan Ph.D., CPA	In Person
01:34:34	Break
01:54:10	Witness Direct Examination	Thomas, Steven	Guy, Dr. Dan Ph.D., CPA	In Person
02:53:50	End of Session

	Description	Attorney	Witness	Presence
00:00:00	General Case Activities
00:01:11	Witness Direct Examination	Thomas, Steven	Guy, Dr. Dan Ph.D., CPA	In Person
00:57:46	Break
01:18:27	General Case Activities
01:18:53	Witness Direct Examination	Thomas, Steven	Guy, Dr. Dan Ph.D., CPA	In Person
01:37:31	Witness Cross Examination	Bennett, James	Guy, Dr. Dan Ph.D., CPA	In Person
02:11:04	End of Session

	Description	Attorney	Witness	Presence
00:00:00	General Case Activities
00:29:30	Witness Cross Examination	Bennett, James	Guy, Dr. Dan Ph.D., CPA	In Person
01:30:39	Break
01:50:43	Witness Cross Examination	Bennett, James	Guy, Dr. Dan Ph.D., CPA	In Person
02:44:06	Break
02:50:59	Witness Cross Examination	Bennett, James	Guy, Dr. Dan Ph.D., CPA	In Person
02:57:26	End of Session

	Description	Attorney	Witness	Presence
00:00:00	General Case Activities
00:10:40	Witness Re-Direct Examination	Thomas, Steven	Guy, Dr. Dan Ph.D., CPA	In Person
00:48:53	Break
01:01:28	General Case Activities		Guy, Dr. Dan Ph.D., CPA	In Person
01:11:12	End of Session

	Description	Witness	Presence
00:00:00	General Case Activities
00:00:12	Witness Direct Examination	Bueti,	Video Recording
00:16:50	Witness Direct Examination	Menna, Steve	Video Recording
00:59:02	Break
01:30:32	Witness Direct Examination	Menna, Steve	Video Recording
01:41:19	Break
01:48:18	Witness Direct Examination	Menna, Steve	Video Recording
02:00:23	End of Session

	Description	Attorney	Witness	Presence
00:00:00	General Case Activities
00:00:22	Witness Direct Examination		Menna, Steve	Video Recording
00:45:57	Break
01:07:07	General Case Activities
01:08:21	Witness Direct Examination	Alexander, Emily	Ward, Ron	In Person
02:03:52	End of Session

	Description	Attorney	Witness	Presence
00:00:00	General Case Activities
00:00:29	Witness Direct Examination	Levitt, Jamie	Stulz, René	In Person
01:15:28	Break
01:38:26	Witness Cross Examination	Thomas, Steven	Stulz, René	In Person
02:43:04	Witness Re-Direct Examination	Levitt, Jamie	Stulz, René	In Person
02:49:14	End of Session

	Description	Attorney	Witness	Presence
00:00:00	Witness Direct Examination		Schulman, Robert	Video Recording
01:02:37	Break
01:26:14	Witness Direct Examination		Schulman, Robert	Video Recording
01:26:58	Witness Direct Examination	Bennett, James	Tucker, Avram	In Person
02:28:41	End of Session

	Description	Attorney
00:00:00	General Case Activities
00:33:46	Closing Statement	Thomas, Steven
01:10:47	Break
01:25:59	Closing Statement	Thomas, Steven
01:44:21	End of Session

	Description	Attorney
00:00:00	General Case Activities
00:00:27	Closing Statement	Thomas, Steven
01:07:49	Break
01:25:53	Closing Statement	Bennett, James
02:45:34	End of Session

	Description	Attorney
00:00:00	General Case Activities
00:03:20	Opening Statement	Bennett, James
01:32:45	Break
02:17:04	Closing Statement	Thomas, Steven
02:58:56	General Case Activities
03:02:53	End of Session

			Description	Attorney	Witness	Presence
		00:00:00	Reading of the Verdict
		00:01:36	General Case Activities
		00:03:40	End of Session