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Deal in allegedly stolen-art case

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In the latest twist in a legal dispute over ownership of a Picasso painting believed stolen by the Nazis, an heir to the former owner has reached a settlement with the dealer who sold the painting to Marilyn Alsdorf of Chicago.

The circa 1922 painting, “Femme en Blanc” (Woman in White), is believed to have been stolen from the grandmother of Thomas Bennigson of Oakland. The work was purchased in 1975 by Marilyn Alsdorf and her late husband, James, before its possible Nazi ties were discovered. Bennigson sued in 2002 for possession of the painting.

While Bennigson’s suit against Alsdorf continues, the new settlement requires the art dealer who sold the painting to the Alsdorfs, Stephen Hahn, now retired and living in California, to pay Bennigson an amount equal to Hahn’s profit from the sale if Bennigson recovers the Picasso by judgment or settlement or otherwise reaches a settlement.

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That requirement expires if Bennigson does not win possession of the painting or reach a settlement of his claim within five years.

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