NEW YORK Jan 7 JPMorgan Chase & Co has
agreed to settle two private lawsuits stemming from its
relationship with convicted Ponzi schemer Bernard Madoff,
according to a court filing on Tuesday.
The bank will pay $218 million to resolve a class-action
suit and $325 million to resolve claims by Irving Picard, the
trustee liquidating Bernard L. Madoff Investment Securities LLC,
the filing in Manhattan federal court shows.
The settlements, which must be approved by a judge, were
announced just after the bank struck a deal with U.S.
prosecutors and bank regulators to pay more than $2 billion to
resolve charges that it failed to follow up on suspicious
activity by Madoff, who was a client of the bank for more than
The bank agreed to pay an additional $18 million to cover
legal fees and expenses, also subject to court approval, the
Picard has estimated that Madoff's Ponzi scheme cost
investors $17.3 billion of principal. Madoff pleaded guilty in
2009 and is serving a 150-year prison sentence.