US judge gives green light to JPMorgan deal to settle Madoff claims

Feb 06 2014, 03:07 IST
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SummaryA federal bankruptcy judge on Tuesday approved JPMorgan Chase & Coís $543-million deal to end two private lawsuits stemming from its relationship

A federal bankruptcy judge on Tuesday approved JPMorgan Chase & Coís $543-million deal to end two private lawsuits stemming from its relationship with convicted Ponzi scheme mastermind Bernard Madoff.

A spokeswoman for the trustee liquidating Bernard L Madoff Investment Securities confirmed that US bankruptcy judge Stuart Bernstein approved the agreement, which was made public on January 7, the same day federal authorities announced the bank had agreed to pay more than $2 billion to settle criminal charges related to the Madoff fraud.

JPMorgan will pay $218 million to resolve class-action litigation and $325 million to resolve claims brought by the trustee, Irving Picard. A JPMorgan spokesman declined to comment. Madoff was a longtime client of the bank, which was accused of turning a blind eye to suspicious activity within his accounts that suggested fraud.

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