Investors who said they lost money in Bernard Madoff’s fraud may not pursue a lawsuit against the U.S. Securities and Exchange Commission for missing the swindler’s Ponzi scheme, a federal appeals court said on Monday. The 9th U.S. Circuit Court of Appeals in Pasadena, California said a federal district judge correctly dismissed their lawsuit seeking to hold the SEC responsible under the Federal Tort Claims Act. Citing a 2009 report by the regulator’s inspector general, investors led by Dichter-Mad Family Partners LLP in Florida said they would not have invested with Madoff had the regulator availed itself of “multiple opportunities” to stop the fraud. Read Reuters report here.
