Judge Tosses Investors' Suits Against Madoff Family

Law360, New York (November 17, 2011, 4:00 PM EST) -- A federal judge ruled Thursday that several prominent Bernard L. Madoff victims could not directly sue the convicted Ponzi schemer's family to try to recover their losses, leaving bankruptcy trustee Irving Picard free to pursue his own lawsuits seeking $244 million alone.

U.S. District Judge Alvin K. Hellerstein said allowing burned investors to mount their suits against the Madoff clan could spawn a mass of litigation that could interfere with Picard's efforts on behalf of creditors as a whole.

“If every creditor sued in all these...
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