Madoff Trustee Loses Bid To Block $410M Deal

Law360, Los Angeles (April 15, 2013, 8:04 PM EDT) -- A New York federal judge on Monday dismissed the Madoff bankruptcy trustee’s efforts to derail a $410 million settlement between New York state and Madoff feeder fund manager J. Ezra Merkin, ruling that the trustee waited too long to intervene in the bankruptcy lawsuit.

U.S. District Judge Jed S. Rakoff not only dismissed an injunction motion requested by Irving Picard, the trustee in charge of recovering money for Madoff’s direct victims, but dismissed the entirety of his lawsuit. He refuted Picard's contention that despite the three...
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