The Supreme Court will hear an appeal that seeks to shut down class-action lawsuits from investors who lost billions in a massive Ponzi scheme orchestrated by convicted former Texas tycoon R. Allen Stanford. The justices today announced they will 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 ruled the suits could go forward. In December, a Baton Rouge judge also cleared the way for anyone in Louisiana who lost money in the debacle to join a class action lawsuit against entities that allegedly enabled the $7 billion Ponzi scheme. Last year, a judge sentenced Stanford to 110 years in prison.
High court may block Stanford investor lawsuits
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