A bankruptcy judge yesterday approved a settlement that allows Peregrine Financial Group to avoid dueling legal claims over its collapse and ensures that any litigation proceeds wind up in the hands of the brokerage's customers and creditors, Dow Jones Daily Bankruptcy Review reported today. Bankruptcy Judge Carol A. Doyle signed off on the deal struck last month between the official overseeing Peregrine's liquidation, trustee Ira Bodenstein, and Peregrine's customers. Under the settlement, Bodenstein will stand down in a battle over litigation and will allow Peregrine's customers and creditors to take the lead in pursuing any legal claims Peregrine may have against Peregrine's former president, Russell Wasendorf Jr., related to his father's "misappropriation of customer funds" from Peregrine.
