RPT-Ascot, Merkin, auditor sued over Madoff investments

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NEW YORK Dec 16 (Reuters) - The New York Law School on Tuesday sued Ascot Partners LP investment firm, its general partner J. Ezra Merkin and auditor BDO Seidman LLP over investments with Bernard Madoff, the man accused last week of one of Wall Street's biggest frauds.

The putative class action lawsuit filed in U.S. District Court in Manhattan said the defendants "recklessly or with gross negligence caused and permitted $1.8 billion, virtually the entire investment capital of Ascot" to be handed over to Madoff, the suspected perpetrator of a $50 billion securities fraud. (Reporting by Grant McCool)