A Bank of New York Mellon Corp. unit will pay $210 million to resolve a series of lawsuits claiming that it concealed doubts about the business operated by convicted Ponzi schemer Bernard L. Madoff.

The settlement by Ivy Asset Management LLC, which comes less than a month before the fourth anniversary of Mr. Madoff's fraud coming to light, resolves litigation by the New York attorney general's office, the U.S. Department of Labor and investors. An additional $9 million will be contributed by other individual defendants in the cases.

The suit brings to a close one of many lawsuits that have emerged over the years against so-called feeder funds, or funds that directed money, to Mr. Madoff's firm. Such suits have attempted to extend liability for Mr. Madoff's scheme beyond his fund alone, to include the asset managers and others who profited from the returns Mr. Madoff generated when he was running his scheme.

Ivy, which is in the process of winding down its operations, allegedly received more than $40 million between 1998 and 2008 to give advice and conduct due diligence for clients who had large investments with Mr. Madoff's firm, according to the original lawsuit filed in New York state court by then-Attorney General Andrew Cuomo. As a result of Ivy's actions, investors suffered more than $227 million in losses, the lawsuit said.

Ivy's due diligence allegedly revealed that Mr. Madoff wasn't investing the funds as advertised. "After learning a series of disturbing facts about Madoff, defendants determined that no investment in Madoff was warranted," according to the original lawsuit filed in May 2010 by the attorney general. "But rather than disclose this determination to their clients, defendants hid the truth from their clients and misled them about Madoff."