In Judge Pollack's view, however, it was the stock market crash that caused the losses.

The fact that the decision came from Judge Pollack was also important.

When Judge Pollack acknowledged the conflict, the court said, he immediately sold the stock.

"The $110 million settlement represents an outstanding achievement," Judge Pollack wrote.

The move by Judge Pollack came as the bankruptcy case for the investment firm moved closer to resolution.

But, underscoring his desire to keep the process moving, Judge Pollack said he would handle those duties himself.

However, he praised Judge Pollack's decision as "a great victory for both artistic freedom and common sense."

Lawyers said they expected Judge Pollack would be presented with the settlement within 10 days.

Others, such as Judge Pollack, continue to handle a heavy caseload.

In 1992, Judge Pollack approved a settlement in that case for more than $1 billion.