The aforesaid agreement resolves the litigation against Ivy by the New York Attorney General, the US Department of Labor, and private plaintiffs and excludes nearly $9m payment by other defendants.
The settlement amount is expected to return nearly all the original investments of the defrauded investors by the Ponzi scheme, according to Attorney General Eric Schneiderman.
As per the settlement plan, the asset manager will pay $210m, which will be used to return money to investors, and also pay the fees and expenses of the Attorney General, DOL and private plaintiffs.
"Ivy Asset Management violated its fundamental responsibility as an investment adviser by putting its own pecuniary interests ahead of the interests of its clients," Schneiderman said.
According to the complaint, the asset manager was paid more than $40m for offering advice and conduct due diligence for clients with large Madoff investments, during the period 1998 to 2008.
The attorney accused Ivy that it failed in its fiduciary duty, subsequently its clients lost over $236m after Madoff’s Ponzi scheme collapsed.
