Bernard L Madoff walks down Lexington Ave to his apartment December 17, 2008 in New York City. US Wall Street baron Bernard Madoff was set tough new bail terms Wednesday including a curfew and wearing an electronic tag, as the US finance watchdog stepped up a probe into his alleged 50-billion dollar fraud. Madoff avoided what would have been his first court appearance since his arrest last Thursday by agreeing to stringent new restrictions under his 10-million dollar bail. AFP PHOTO/DON EMMERT (Photo credit should read DON EMMERT/AFP/Getty Images)AFP / Getty Images
A Manhattan bankruptcy judge has approved a $7.2-billion (U.S.) deal to settle a lawsuit brought against the estate of the biggest beneficiary of Bernard Madoff's fraud.
The judge signed off on the settlement Thursday at the urging of a trustee who was appointed to recover funds for investors burned by Mr. Madoff's Ponzi scheme.
Federal authorities had announced the deal with the estate of Jeffry Picower last month. Mr. Picower drowned in his Florida swimming pool after suffering a heart attack in 2009. His widow has insisted Mr. Picower didn't know Mr. Madoff was a con man.
Some investors who haven't qualified for payouts by the trustee had objected to the settlement. They have said it dries up funds they had a right to recover.
Mr. Madoff is serving a 150-year prison sentence.