Bankruptcy Judge Stuart Bernstein ruled yesterday that victims of Bernard Madoff's fraud cannot pursue a Florida lawsuit to recover $11 billion from the estate of Jeffry Picower, who they say helped perpetuate the swindler's Ponzi scheme, Reuters reported. Judge Bernstein said that the lawsuit by A&G Goldman Partnership and Pamela Goldman, their third effort to sue in Florida, violated an injunction barring Madoff victims from pursuing claims belonging to Irving Picard, the trustee liquidating Bernard L. Madoff Investment Securities LLC. Picard had in December 2010 won a $7.2 billion settlement with the estate of Picower, who died in October 2009. But a slew of litigation ensued from Madoff customers, including many who say the trustee undervalued their claims, against Picower and other alleged enablers of Madoff. Picard has estimated that Madoff's victims lost $17.5 billion in the fraud, which was uncovered in December 2008. Read more.
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