Madoff Investor Moves to Dismiss Damages Suit

Hedge fund operator J. Ezra Merkin has moved to dismiss a damages suit brought by New York's attorney general to recover an alleged $2.4 billion that was lost when Merkin turned over his clients' money to Bernard Madoff to handle without telling the investors. In his motion to dismiss, Merkin challenged the suit's assumption that he did not provide adequate disclosure that he was funneling the money to Madoff, and contended that his clients were "sophisticated" investors.