The defendants moved for security for costs in a $5 billion auditor negligence action arising from audits connected to investments with Bernard L. Madoff Investment Securities.
The plaintiffs, investment funds in liquidation, did not dispute entitlement to security but contested the amount sought.
The court considered estimates for pleadings, discovery planning, document review, examinations for discovery, and disbursements, including expert evidence.
Applying Rule 56.01 and assessing reasonable partial indemnity rates, the court found the plaintiffs’ proposed figures unrealistic given the complexity and scale of the litigation.
Substantial security for costs was ordered to cover work through the first stage of examinations for discovery.
