As I have noted before, in August and September 2013, the Liquidation Trust went to trial in United States District Court for the Northern District of California on its final claim, which was a claim for negligence against the law firm that represented 1031 Advance, Inc. in its sale to 1031 Tax Group, Inc. After a hard fought three week trial, the jury concluded that the law firm was not negligent. While we are disappointed with and disagreed with the jury verdict, we believe we did the best job possible with the evidence and have to respect the verdict.
After careful consideration and in consultation with my counsel, I have concluded that it is not in the best interests of the Liquidation Trust to pursue post-trial motions or an appeal, which would have been a costly and risky effort, and at best would result in the right to a new trial. In view of that, both sides in the case have agreed to entry of a judgment for the defendant in order to end the case.
As you know, as to all of the other many claims the Trust had, we obtained significant recoveries for the benefit of the creditors/exchanger, and this is the only one that resulted in a defense verdict. I think that is a good track record, and I am proud of the work my counsel and I did and the results we achieved.
I do not expect further significant recoveries for any assets and will be considering what steps to take to conclude the work of the Liquidation Trust.