Supreme Court To Look At Lawsuits By Stanford Investors
by: Ed Mayberry, January 18, 2013 2:01:00 pm
The Supreme Court agreed to hear an appeal that seeks to shut down class-action lawsuits from investors who lost billions in the massive Ponzi scheme. The lawsuits claim that insurance brokers and law firms working on behalf of Stanford's businesses misled investors and regulators about the value and risks of investing with Stanford.
The justices said they would review appeals court rulings allowing the suits to proceed against individuals, law firms and investment companies that the investors claim aided Stanford's fraud. At issue is whether a federal law aimed at limiting private lawsuits that allege securities fraud can be used to block the suits investors filed in Louisiana and Texas. A federal judge initially threw them out, but the 5th U.S. Circuit Court of Appeals in New Orleans said the suits could go forward.
The Supreme Court will look at the case either in April or after the new term begins in October.
Last year, a judge here in Houston sentenced Stanford to 110 years in prison.