JPMorgan Chase & Co accused the
trustee seeking $6.4 billion for victims of Bernard Madoff’s Ponzi scheme of
doing an end run around the law in pursuing his case, and said it has a right
to a jury trial.
The second-largest U.S. bank said
court-appointed trustee Irving Picard is exceeding his power by suing in
bankruptcy court, where a judge rather than a jury would decide the case.
“The trustee’s massive damages
action against JPMorgan bears no resemblance to a typical lawsuit commenced by
a bankruptcy trustee,” JPMorgan’s lawyers said in a court filing.
“In substance,” the bank
said, “the trustee is trying to pursue an enormous back-door class
A spokesman for Picard did not
immediately respond to a request for a comment.
JPMorgan asked U.S. Bankruptcy
Judge Burton Lifland, who oversees the Madoff proceedings, to move Picard’s
lawsuit to federal district court, where it can demand a jury trial