Tremont Defeats Challenge to Madoff-Related Settlement

Skadden represented Tremont Group Holdings, Inc. in the appeal of its $1 billion settlement agreement with Irving Picard, the trustee for the Securities Investor Protection Act (SIPA) liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS). Investors in certain Tremont-managed funds asserted that the bankruptcy court's prior approval of the settlement was unfair to investors in those funds and not beneficial to the BLMIS estate. On June 27, Judge George B. Daniels of the U.S. District Court for the Southern District of New York granted Tremont's motion to dismiss, ruling the appellants were not BLMIS creditors and, therefore, lacked standing to appeal.