A lawsuit seeking to reclaim $825 million from two major funds that invested with Bernard Madoff may move forward largely intact, a bankruptcy judge ruled on Tuesday, Dow Jones Daily Bankruptcy Review reported today. Bankruptcy Judge Stuart M. Bernstein largely rejected a bid by the funds, Kingate Global Fund Ltd. and Kingate Euro Fund Ltd., to dismiss litigation brought by the Irving Picard, the trustee winding down Madoff's investment firm. The lawsuit seeks to recover the $825 million that the two funds, so-called feeder funds that pooled investors' cash and sent the funds on to Madoff, received in the six years before the 2008 collapse of what was ultimately to be revealed as the largest Ponzi scheme of all time. Read more. (Subscription required.)
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