Friday, 28 October 2016
Last updated 54 min ago
Aug 29 2012 | 12:41pm ET
Ponzi schemer Arthur Nadel's law firm has settled a lawsuit filed by the court-appointed receiver in the case.
Holland & Knight agreed to pay $25 million to settle Burton Wiand's allegations, without admitting or denying any wrongdoing. The law firm, which served as counsel to Nadel's funds and prepared investor memoranda for it, said it wanted to "resolve these matters amicably."
Wiand said the deal "represents a very significant benefit for the receivership estate and defrauded investors," who lost $162 million in the scam. Nadel died in April.
Holland & Knight earned only $500,000 for its work for Nadel's six hedge funds.
About $6.8 million of the $25 million settlement would go to the law firm pursuing the case. The deal still needs to be approved by a federal judge, and would bar other creditor claims against Holland & Knight—significant, since some Nadel victims had planned a class-action.