KeyCorp To Pay $6.85M To Settle Madoff Investment Claims

A group of pension and retirement funds has agreed to settle a lawsuit accusing KeyCorp and other investment companies of negligently feeding money into Bernie Madoff’s Ponzi scheme for $6.85 million, according to documents filed Monday in New York federal court. The Cleveland-based bank and its subsidiaries Victory Capital Management, Inc., Austin Capital Management, Ltd., and Austin Capital Management GP Corp. will distribute the funds to four classes of investors in the various funds, whose lawsuits were consolidated in 2009. The defendants, which also included various directors and executives at the KeyCorp properties, admitted no wrongdoing as part of the deal, according to the filing. “Defendants have concluded that further conduct of the MDL would be protracted and expensive and that it is desirable that the MDL be fully and finally settled in the manner and upon the terms and conditions set forth in this Stipulation,” the agreement said. More on Law360 here.