March 18, 2013
A New York federal judge on Friday signed off on a $219 million settlement resolving several lawsuits surrounding a Bank of New York Mellon Corp. unit’s role in the Bernard Madoff Ponzi scheme, but put off ruling on a contentious $41 million fee request from attorneys.
The settlement puts to rest a class of investors’ claims that New York Attorney General Eric Schneiderman’s office, the U.S. Department of Labor and private investors lodged against Ivy Asset Management LLC. The company, an investment advisory firm owned by BNY Mellon, conducted due diligence for clients with Madoff investments for years before the scheme came to light, but allegedly failed to disclose its suspicions that Madoff was a fraud.
In a one-page order, U.S. District Judge Colleen McMahon gave no reason for her decision to approve the settlement. She said an opinion would be forthcoming, along with her decision on the fee request, which has been challenged by Schneiderman.
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The plaintiffs are represented by Lowey Dannenberg Cohen & Hart PC, Kessler Topaz Meltzer & Check LLP, Cohen Milstein Sellers & Toll PLLC, Wolf Haldenstein Adler Freeman & Herz LLP and Bernstein Liebhard LLP.
Read Madoff Costs BNY Mellon Unit $219M As Attys Wait on Payday.