NY AG Eyes Transfer In Suit Challenging $410M Merkin Deal

Law360, New York (September 4, 2012, 1:24 PM EDT) -- New York's attorney general told a federal bankruptcy court on Friday it could not hear a suit by the trustee of Bernard L. Madoff's investment firm seeking to block the state's $410 million settlement with hedge fund manager and alleged Ponzi scheme enabler J. Ezra Merkin.

Attorney General Eric T. Schneiderman said the Aug. 1 suit by Irving Picard, the liquidating trustee for Bernard L. Madoff Investment Securities LLC, instead belongs in district court because it involves claims under state law and federal nonbankruptcy law. Picard...
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