Friday, 27 May 2016
Last updated 12 hours ago
Jan 30 2014 | 10:38am ET
JPMorgan Chase is not quite free of its association with Bernard Madoff just yet.
A law firm representing 193 of the so-called "net winners" from the $65 billion Ponzi scheme—those who withdrew more over the life of their investment than they put in—have indicated that they will opt out of the $543 million settlement the bank struck earlier this month. That deal, which covers a lawsuit filed by Madoff receiver Irving Picard and several class-actions, was part of a larger $2.7 billion deal with federal authorities settling criminal charges against the bank, which was accused of aiding and abetting Madoff's fraud and failing to notify regulators about red flags in his operations.
Unsurprisingly, however, the deal doesn't look all that good to the net winners, who Picard has refused to allow a share in the billions he's recovered. And their lawyers, Becker & Poliakoff, call the JPMorgan settlement one made on behalf of the "net losers."
The law firm says that "net winners" also suffered at Madoff's hands, and should be allowed to continue to seek damages. It plans to pursue separate claims against JPMorgan, Madoff's primary bank for decades, Becker & Poliakoff said in a court filing.