Last Friday, Irving Picard, the trustee liquidating Bernie Madoff's investment firm, launched a $19.6 billion lawsuit against Pioneer Global Asset Management SpA, its parent UniCredit and four others. Unicredit's plans to sell Pioneer "may hit a snag" in the wake of the filing of Picard's lawsuit, Bloomberg reported on Sunday.

Besides Pioneer and UniCredit, Picard is suing ex-UniCredit CEO Alessandro Profumo, Bank Austria, Bank Medici AG and Bank Medici's founder, Sonja Kohn. Picard wants $19.6 billion to compensate people who were victimized by Madoff's scheme, according to the report.

Bloomberg quoted a statement UniCredit issued on behalf of itself, Pioneer and Bank Austria saying they will fight the complaint.

Back in January 2009, UniCredit said clients had placed $1.1 billion in funds run by Madoff via Pioneer Alternative Investments.  

Edited by: Armie Margaret Lee


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