There's been a happy ending:
For Lost Picasso, a Surreal Return
By MICHAEL WILSON
There are people who lose things, and people who find them, and sometimes, the two meet. In many cities, it is that simple: Excuse me, sir, you dropped this.
But this is New York. The lost thing was a portfolio case the size of a coffee table, left behind in a busy subway station. Inside was a Picasso piece and a study of another by Henri Matisse's great-granddaughter, Sophie.
How the portfolio was first found is a mystery. But a man, in turn, left it leaning against a wall on the Upper West Side, under a poster advertising bagels. The next man to handle it, a sidewalk book vendor, took it home to Queens. He liked the portfolio. He had no idea there was a Picasso in there, and he would not have picked it out if he had looked. It was just another drawing of two guys on a bench.
But soon, the story of the missing artwork was all over the papers, and his wife figured it out first. He called the man who lost the portfolio and inquired about the $1,000 reward. Next thing he knew, the police were waiting for him at his corner yesterday when he showed up for work...
http://www.nytimes.com/2003/06/03/nyregion/03ART.html