United States Commodity Futures Trading Commission v. Wilson, et al. (Distribution Plans—Rising Tide v. Net Loss Method)

U.S. Commodity Futures Trading Commission v. Wilson, 11-CV-1651-GPC-BLM, 2013 WL 3776902 (S.D. Cal. July 17, 2013)—In the distribution process, District Court showed preference for the rising tide method to determine claim amounts, where claimants keep distributions previously made to them, but the distributions are credited against their calculated pro rata share, dollar for dollar. Overruling objections, the Court asserted that the rising tide method is the most equitable method for claims distribution and superior to the net loss method, where the funds previously received are deducted from the total amount invested prior to calculating the investor’s pro rata share.