The Supreme Court yesterday rejected an appeal by longtime investors with Bernard Madoff who argued the formula used to return money to clients should have treated them more favorably, Dow Jones Daily Bankruptcy Review reported today. By declining to hear the appeal, the high court's move clears the way for court-appointed trustee Irving Picard to distribute more than $900 million to customers defrauded by Madoff's Ponzi scheme. Those funds had been held in reserve while the investors' appeal worked its way through the courts. The investors, some of whom had invested money with Mr. Madoff for several decades, argued that the amount of their recoveries should be adjusted upward for interest or inflation to reflect the time value of money. Lower courts disagreed, ruling the Securities Investor Protection Act didn't permit such adjustments. Read more. (Subscription required.)
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