Madoff Investor Wins Bid To Remove $3B Clawback Suit

Law360, New York (September 16, 2011, 11:01 PM EDT) -- A federal judge in New York on Friday granted a Bernard L. Madoff Investment Securities Inc. investor's request to remove a $2.8 billion clawback motion out of bankruptcy court to address whether the Madoff trustee has the authority to bring the suit.

U.S. District Judge Jed S. Rakoff granted James Greiff's motion to withdraw the bankruptcy reference from the adversary proceeding in order to determine whether trustee Irving Picard can use the avoidance provisions of the Bankruptcy Code to seek transfers BLMIS made in order to...
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