NEW YORK (
asked a judge to dismiss a $19 billion lawsuit from Bernard Madoff's trustee Irving Picard on the grounds that he did not have the right to bring common-law claims against the bank.
Picard is seeking $19 billion in damages from JPMorgan for allegedly knowing about Madoff's Ponzi scheme that was conducted through accounts with the bank. The bank has denied the allegations, saying that Picard is yet to show facts that suggest that anyone at the bank knew about the scam.
According to a Bloomberg
report, the bank told Judge Colleen McMahon that the trustee lacked "standing" in bringing his claims, citing a recent ruling by U.S. District Judge Jed Rakoff in Picard's $9 billion case against
Judge Rakoff threw out that case saying Picard, who was hired to liquidate the Madoff firm, does not have the right to bring his common-law claims on behalf of Madoff customers or the estate . The "clean hands" doctrine prevented representatives of a fraudulent estate are prevented from suing to "recover a wrong" that the estate took part in, the judge said.
JPMorgan is also moving the court to dismiss Picard's bankruptcy claims against it, which includes a demand to recover a $145 million loan to the Madoff firm, plus interest and loan fees.
also asked McMahon to bar Picard from seeking $2 billion in damages based on common-law claims of aiding and abetting fraud, according to the report.
--Written by Shanthi Bharatwaj in New York
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