The Mets owners want a $1bn lawsuit from the Madoff trustee tossed out, claiming the trustee doesn't have proof they knew of Madoff's Ponzi scheme.

Irving Picard, the trustee, claims owners Fred Wilpon and Saul Katz can't keep the $300mn in profits they made from the scheme. Additionally, Picard wants their $700mn principal because he alleges they "turned a blind eye" to signs of Madoff's fraud.

Karen Wagner, an attorney for the owners, counters by saying Picard has yet to show that the owners ignored any red flags. Wagner argues Picard's case "doesn’t plead anything amounting to willful blindness."

 David Sheehan, a lawyer for Picard, argued that he only needs to show that Wilpon and Katz had information that should have prompted them to question Madoff. He also stated that, in the 1,000 or so lawsuits Picard has brought against investors, only 60 claim that the investors knew or should have known of Madoff's fraud. [Businessweek, 8/22/11]