Judge will approve settlement in Madoff feeder fund case

Fairfield Greenwich Group investors will receive $80 million in the agreement

A federal judge said late last week that he will approve an $80.25 million class action settlement that will benefit those that invested in Fairfield Greenwich Group funds. Investors said Fairfield funneled money to Bernie Madoff, who is now serving a 150-year prison sentence for masterminding the world’s largest-ever Ponzi scheme.

According to their suit, Fairfield investors lost more than $1 billion in Madoff’s scheme. But Judge Victor Marrero said $80 million was fair because Fairfield’s founders’ assets mostly funded the accord.

"In all circumstances, the plaintiffs have met the burdens to show the settlement is fair and reasonable," Marrero said on Friday.

The investors will get $50 million of the settlement immediately, and the parties will address the remaining $30.25 million when lawyers complete the necessary paperwork. Marrero’s approval of the settlement is contingent on that paperwork.

Read more about this suit on Thomson Reuters.

To follow the Madoff fiasco on InsideCounsel, see:

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Contributing Author

Cathleen Flahardy

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