Mort Zuckerman Suing Ezra Markin Over Madoff Losses

Boston Properties chairman Mort Zuckerman has had enough, and according to Bloomberg has filed lawsuit against Ezra Merkin and Gabriel Captial for Madoff related losses. Mortimer, who owns 2.5 million shares in BXP, likely doesn't have much to worry about as long as BXP stock trades above $40/share keeping him planted nicely in the billionaire club. Whether this Forbes-eligible condition persists, only time will tell.

The Mortimer lawsuit is for a $40 million loss, has claims of fraud and negligent representation and seeks unspecified punitive damages. Mort claims:

“Merkin represented that he ‘exercised reasonable care’ in selecting managers and made ‘periodic reviews. There is no way Merkin could make such a representation without learning basic facts about Madoff’s operation, including the fact that Madoff had not made any stock purchases for at least 13 years.” He claimed that Merkin had a “huge incentive not to disclose Madoff’s role, especially to investors like Zuckerman,” because he charged clients “substantial fees” to manage both his Ascot Partners LP and Gabriel Capital.