By Dow Jones Business News,
January 29, 2014, 04:54:00 PM EDT
By Peg Brickley
Investors who say they came out of Bernard Madoff's Ponzi scheme "net winners" have signaled they intend to
continue pursuing J.P. Morgan Chase & Co. despite a proposed $543 million settlement of suits over the bank's alleged
role in the fraud.
Papers filed in federal court and bankruptcy court in New York list 193 Madoff investors who are opting out of
settlements that are part of the $2.6 billion the bank has agreed to pay for failing to catch and expose Mr. Madoff's
Irving Picard, trustee of a securities liquidation proceeding for the Madoff funds, has agreed to take $325 million
from J.P. Morgan, in exchange for dropping his bid to claw back about $435 million worth of payments the bank received
shortly before Mr. Madoff was exposed, and his scheme collapsed.
Additionally, J.P. Morgan has agreed to pay $218 million to settle class action lawsuits from former customers who
accused the bank of aiding and abetting the fraud, and other wrongs.
The official customer representatives have filed papers supporting the settlement, calling it "manifestly fair and
equitable, reasonable," and noting it means payment after five years of waiting. The class action settlement won
preliminary approval earlier this month. It is slated to be reviewed in federal court March 7.
Investors represented by the Becker & Poliakoff LLP law firm, however, said in court filings they will pursue
separate claims against J.P. Morgan on behalf of all Madoff net winners. Settlement documents say the deal with J.P.
Morgan is being cut on behalf of "net losers," people who lost money in Madoff's phony investing scheme. However, "net
winners" say they also suffered due to the Madoff scheme, and deserve to continue to try to collect damages.
J.P. Morgan spokesman Brian Marchiony declined to comment Wednesday on the opt-out notice.
Write to Peg Brickley at firstname.lastname@example.org
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