Wednesday, 24 August 2016
Last updated 8 hours ago
Jun 30 2014 | 6:31am ET
Two service providers to giant Bernard Madoff feeder fund Fairfield Greenwich Group have failed to stop an $80 million settlement with investors.
A federal appeals court in Manhattan ruled Friday that PricewaterhouseCoopers and Citco Fund Services lacked standing to challenge the 2012 deal. The companies had argued that settlement unfairly allowed plaintiffs who participated in it to go after them in other venues, and asked the court to rule that they “were entitled to argue that any entity that participated in the New York settlement could not pursue claims in any other jurisdiction,” notably, the Netherlands, where Fairfield Greenwich investors have sued the two.
But U.S. Circuit Judge Barrington Parker rejected that claim, ruling that “nothing in the final order precludes the non-settling defendants from asserting in the District Court or in other litigation any claims or defenses that may be available to them.”