Bankruptcy Judge Burton Lifland dismissed a lawsuit by Rosenman Family LLC on Tuesday. The ruling was made during a hearing on litigation brought by creditors.
The Great Neck, N.Y., company had sued Irving H. Picard, the trustee in charge of liquidating Madoff's assets, and JP Morgan Chase & Co., where the company said it deposited the money.
Rosenman said it deposited the money in one of Madoff's accounts on Dec. 5, six days before his arrest.
The company said it was supposed to be invested after the first of the year with Bernard L. Madoff Investment Securities LLC.
Madoff is under house arrest awaiting trial on a securities fraud charge.