Judge Halts Cayman Lawsuit Against Madoff Trustee

Law360, New York (October 13, 2011, 4:17 PM EDT) -- A New York federal bankruptcy judge on Wednesday blocked a lawsuit filed in the Cayman Islands against the trustee for victims of Bernard Madoff's massive Ponzi scheme, calling the action lodged by Maxam Absolute Return Fund Ltd. a weak attempt at forum shopping.

In granting an injunction request by liquidation trustee Irving H. Picard, U.S. Bankruptcy Judge Burton R. Lifland halted Maxam's lawsuit, which had sought a declaration that Maxam was liable for only $25 million linked to Madoff, not the $100 million Picard is seeking....
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