Here is a great article from Bloomberg News by
Bayou Accord Case Model for Any Deal With Madoff Trustee.
"With Madoff, the Mets owners were simply in too deep -- having substantially supported their businesses with Madoff money -- to do anything but ignore the gathering clouds,” according to Picard’s complaint. “Sterling performed no diligence on Madoff in response to any of the various red flags to which it was exposed.”
"The trustee’s lawsuit is an outrageous ‘strong arm’ effort to try to force a settlement by threatening to ruin our reputations and businesses which we have built for over 50 years,” Fred Wilpon and Saul Katz said yesterday in a statement.
They called the allegations in the complaint “abusive, unfair and untrue.”
"The Sterling partners had more than $500 million in their Madoff accounts at the time of his failure, their lawyers said in a statement yesterday. Wilpon and Katz said that none of the Sterling partners ever suspected Madoff was running a fraud."