New York, NY

U.S. District Judge Jed Rakoff dismissed on Tuesday nine of 11 lawsuits filed by Madoff trustee Irving Picard against the owners of the New York Mets.

Picard sought to recover $1 billion, broken down into $300 million profit and $700 million in principal, from Sterling Equities partners Fred Wilpon, Saul Katz and other defendants.

However, Rakoff said Picard could seek money withdrawn in the last two years. The decision has implications in other clawback lawsuits filed by Picard against those involved in the Ponzi scheme.

Rakoff said Picard could continue to pursue $83.3 million in alleged false profits and $301 million in principal, but the trustee must show a high standard of proof to seize any of the baseball team's principal investment.

Picard has accused the team's owners of ignoring the warning signs of the Ponzi scheme of Bernard Madoff. Wilpon and Katz have denied any wrongdoing.

The lawsuit prompted the team owners to enter into an agreement with hedge fund manager David Einhorn this past spring to sell a stake in the New York Mets, but the deal collapsed this month. Wilpon and Katz are still looking for capital infusion into the embattled baseball team.

Picard, who is reviewing the decision, declined to comment on Rakoff's ruling.

Legal observers said the decision was neither a big win nor a total loss for the Madoff trustee, but could also be considered a minor victory for the New York Mets owners because of their reduced exposure.

Twitter: @ihavenet

Copyright © 2011 AHN - All Rights Reserved