Objections to a $32 million settlement with a group of New York hedge funds have been dropped by bankruptcy creditors trying to recover from the collapse of Scott Rothstein’s fraud-ridden law firm.

The unsecured creditors committee in the Rothstein Rosenfeldt Adler bankruptcy case accused the court-appointed trustee of giving a sweetheart deal to the four funds that helped keep Rothstein’s $1.2 billion scam going through its peak.

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