Court OKs $46.8-Million Suit Settlement by Boesky

A federal judge Tuesday approved a $46.8-million settlement of lawsuits against Ivan F. Boesky to repay investors who were cheated by the fallen speculator’s securities fraud.

The money probably will be spread among thousands of investors with claims against Boesky, who was at the center of Wall Street’s most sensational insider trading scandal.

Stanley Nemser, attorney for the investors, said that about 80,000 investors had been notified of the settlement but that it is unclear how many will have valid claims.

The bulk of the money comes from a fund set up by the Securities and Exchange Commission as part of Boesky’s plea agreement.

Boesky, once one of Wall Street’s most powerful stock speculators, agreed in 1986 to plead guilty to one criminal charge and pay $100 million, half of that to the SEC, to settle government charges.

Under the court-approved settlement, $29.6 million will be divided among investors who lost money from Boesky’s insider trading on tips from Dennis B. Levine. Levine, a former Drexel Burnham Lambert Inc. investment banker, was also prosecuted for his crimes.

The rest will be distributed among investors who lost money on trades involving Boesky and others, including Drexel and its former junk bond chief, Michael Milken.