Judge Dismisses Suit Against Milken, Boesky

A federal judge has thrown out what he called an “overblown” investor lawsuit against convicted junk bond king Michael Milken and arbitrager Ivan F. Boesky.

U.S. District Judge Milton Pollack dismissed the remaining civil complaint that several investors in Ivan Boesky & Co. had made against Milken, Boesky and others.

The investors didn’t lose money in their limited partnerships. In fact, they’ve recovered 114.6% of their $11.5-million investment in the limited partnerships, which have since been liquidated.

Forty-three plaintiffs sued Milken and Boesky in 1987 to get even more money. Most have since dropped out of the lawsuit, but several plaintiffs remained. The remaining investors included Commercial Union Assurance Co. and Gemini Overseas Corp., which alleged they were defrauded into buying the partnership interests.

Pollack chastised the investors for making frivolous allegations against Milken and Boesky. Pollack said he would consider whether the investors and their attorneys should pay some of the defendants’ legal fees because of the investors’ “oppressive and prolific (litigious) conduct.”

The other defendants were Seemala Partners; Michael Milken’s brother, Lowell Milken; Dennis Seligmann, and Harris & Co.