A federal bankruptcy judge ruled that investors in Bayou Management, a collapsed, fraudulent hedge fund, are able to sue investors who cashed out before the fund failed in 2005, according to The Wall Street Journal.

One trustee suing the hedge fund, Jeff Marwil, is attempting to recover $140 million from a range of investors who cashed out before the fund’s closing. Sixteen million of the sum is profit and $126 million is the original money investors poured into Bayou.

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