When the U.S. Supreme Court green-lighted investor claims over R. Allen Stanford’s Ponzi scheme back in February, many predicted that the ruling would also have implications for investors caught up in Bernie Madoff’s fraud. This week a judge proved that prediction correct when he reinstated claims against one of Madoff’s so-called feeder funds, Tremont Group Holdings Inc.
In a 10-page decision issued Monday, U.S. District Judge Thomas Griesa in Manhattan revived state law fraud claims in a batch of lawsuits brought against Tremont on behalf of Madoff victims. Citing the high court’s Feb. 26 decision in Chadbourne & Parke v. Troice, Griesa ruled that the fraud claims aren’t preempted by the Securities Litigation Uniform Standards Act (SLUSA).
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