Bernstein nonetheless rejected Picard's effort to stop further lawsuits by the Goldman parties, while saying "the question is close."
The judge said the parties have not pursued frivolous or vexatious litigation, and that Picard could seek sanctions if they cross the line.
The case is Securities Investor Protection Corp v. Bernard L. Madoff Investment Securities LLC, U.S. Bankruptcy Court, Southern District of New York, No. 08-01789.