Mets owners filed legal papers Sunday disputing a court trustee's claim that they owe more than $1 billion because they should have known that their investments with Bernard Madoff were fraudulent. Co-owners Fred Wilpon and Saul Katz and their investment fund, Sterling Equities, allege trustee Irving Picard made "false allegations" and omitted evidence favorable to the owners in order to force a settlement. "The central allegations in the complaint are directly contradicted by sworn testimony taken by the Trustee's counsel prior to the filing of the complaint," Mets general counsel David Cohen said in a statement released Sunday.