Pearlman Ponzi Victims Spared Clawback Suits

Law360, New York (August 13, 2009, 7:33 PM EDT) -- Hundreds of investors taken in by boy-band impresario Lou Pearlman’s $300 million Ponzi scheme won’t be facing clawback suits under a reported settlement with the court-appointed trustee in Pearlman’s bankruptcy case.

U.S. Trustee Soneet Kapila has agreed to let drop more than 230 suits launched earlier this year in the U.S. Bankruptcy Court for the Middle District of Florida to recover money that was doled out to investors in, or victims of, Pearlman’s massive fraud, according to the Orlando Sentinel.

An attorney for the trustee announced...
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