Fairfield Greenwich Founders to Settle Madoff Suit

The founders of Fairfield Greenwich Group, which funneled billions of dollars to Bernard Madoff, have agreed to be part of an $80 million settlement to end a lawsuit by some of its investors seeking to recover funds lost in his massive Ponzi scheme. The settlement follows a separate deal by Madoff trustee Irving Picard and the liquidators of Fairfield Greenwich’s various funds last year, in which the Fairfield funds gave up their claim against the Madoff estate to $1 billion lost by investors and agreed to divide any future recoveries from the funds’ operators and others. The new settlement represents a “substantial portion” of the assets that might be recovered from the individual defendants, including Fairfield Greenwich’s founding partners, according to court papers. It is unclear how the deal might affect Mr. Picard’s ongoing litigation against the firm’s founders and others.
More in the Wall Street Journal here.