High Court Seeks Views on Stanford Fraud Lawsuits

WASHINGTON–The U.S. Supreme Court on Monday asked the Obama administration for its views on whether victims of financier R. Allen Stanford’s $7 billion Ponzi scheme can sue insurance brokers, law firms and other third parties on allegations they assisted the fraud.
The defendant third-party firms have petitioned the Supreme Court to stop the lawsuits, which were brought by multiple investor groups based on state law in Louisiana and Texas. The defendants argue the suits are barred by the federal Securities Litigation Uniform Standards Act, which largely prohibits state-law class action lawsuits for securities fraud. More on NASDAQ here.