Two hedge funds have filed a lawsuit against Deutsche Bank, alleging that the German institution is backing out of a $1 billion deal to buy their claims for losses from investments with Bernie Madoff after the value of the claims fell over $90 million, according to the Wall Street Journal. The claims’ worth fell after a series of court rulings against the Madoff trustee, Irving Picard.
The two funds are Kingate Global Fund and Kingate Euro Fund, which both have been in a liquidation process since Madoff’s $65 billion Ponzi scheme blew up in 2009 because they had all their assets invested with Madoff’s company. Kingate is already wrapped up in legal troubles—it’s being sued by Picard for ignoring the Ponzi scheme despite warning signals.
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