Judge Approves Massive Madoff Settlement


A Manhattan bankruptcy judge has approved a $7.2 billion deal to settle a lawsuit brought against the estate of the biggest beneficiary of Bernard Madoff’s fraud.

The judge signed off on the settlement Thursday at the urging of a trustee who was appointed to recover funds for investors burned by Madoff’s Ponzi scheme.

Federal authorities had announced the deal with the estate of Jeffry Picower last month. Picower drowned in his Florida swimming pool after suffering a heart attack in 2009. His widow has insisted Picower didn’t know Madoff was a con man.

Some investors who haven’t qualified for payouts by the trustee had objected to the settlement. They have said it dries up funds they had a right to recover.

(Source: NBC New York)