Banking

Bank of New York Mellon to Pay for Madoff Fraud

$210 million to clients who have suffered losses

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A Bank of New York Mellon Corp. unit will pay $210 million to resolve a series of lawsuits by clients who claimed they suffered losses in Bernard Madoff's massive fraud, New York Attorney General Eric Schneiderman said on Tuesday.

The settlement with Ivy Asset Management LLC resolves litigation by the attorney general's office, the U.S. Department of Labor and investors. An additional $9 million will be contributed by other individual defendants in the cases.

Combined with future amounts investors anticipate receiving in the Madoff bankruptcy proceeding, the settlement is expected to return all or nearly all the original investment to those Ivy investors defrauded by Mr. Madoff's Ponzi scheme.