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U.S. justices say Allen Stanford victims can sue lawyers, brokers

By Lawrence Hurley WASHINGTON (Reuters) - Investors in Allen Stanford's $7 billion Ponzi scheme can sue to recoup losses from lawyers, insurance brokers and others who worked with the convicted swindler, the U.S. Supreme Court ruled on Wednesday. On a 7-2 vote, the court held that lawsuits filed in state courts can go forward. Stanford's fraud involved the sale of bogus certificates of deposit by his Antigua-based Stanford International Bank. He is serving a 110-year prison sentence.

Supreme Court allows investor lawsuits over Stanford Ponzi scheme to go forward

WASHINGTON - The Supreme Court ruled Wednesday that victims of former Texas tycoon R. Allen Stanford's massive Ponzi scheme can go forward with class-action lawsuits against the law firms, accountants and investment companies that allegedly aided the $7.2 billion fraud. The decision is a loss for firms that claimed federal securities law insulated them from state class-action lawsuits and sought to have the cases thrown out. But it offers another avenue for more than 21,000 of Stanford's bilked investors to try to recover their lost savings.

US top court says Stanford scam victims can sue lawyers, insurers

The US Supreme Court ruled Wednesday that class action suits can be filed against third parties linked to Allen Stanford's vast financial swindle, a decision that could have a major impact on victim compensation. In a seven to two decision, the high court ruled in favor of victims in Louisiana and Texas, who want to sue the legal firms, insurance companies and financial companies that they say enabled Stanford's Ponzi.

SEC battles with industry fund over Stanford victims' claims

By Sarah N. Lynch WASHINGTON (Reuters) - U.S. regulators sought to overturn a 2012 court ruling that prohibited victims of Allen Stanford's $7 billion Ponzi scheme from seeking compensation, in an unprecedented legal battle between the government and an industry-backed fund that protects investors.

US Supreme Court opens term with Stanford fraud case

The US Supreme Court returned from its three-month break Monday to hear arguments arising from Allen Stanford's multi-billion dollar fraud case, which could have major impact on victims' compensation. The court -- seen as increasingly business-friendly in recent years -- is to rule on whether Stanford's victims can be allowed to sue third parties such as law and insurance firms accused of enabling the Texan tycoon's scam.

US Supreme Court opens term with Stanford scam case

The US Supreme Court returned from its three-month break Monday to hear arguments in the Allen Stanford scam case, which could have major impact on victims' compensation. The high court is immediately tackling one of the many financial matters on its docket this term, which lasts through early 2014. The case concerns investors in the US states of Louisiana and Texas which claim the right to a class-action lawsuit against law firms, insurance companies and financial firms that they say enabled Stanford and his scam.

Correction: Stanford-Recovering Losses story

HOUSTON - In a Sept. 3 story about the repayment of money to swindled investors in former tycoon R. Allen Stanford's Ponzi scheme, The Associated Press erroneously reported that David Arlington, an attorney for the U.S. court-appointed receiver, said an initial amount of about $1 million would be disbursed within the next few months. Arlington said most of that amount has already gone out, and that most of the remaining $55 million that was approved for disbursement would likely go out in the next few months. A corrected version of the story is below:

SEC judge rules Stanford executives are liable for fraud

By Sarah N. Lynch WASHINGTON (Reuters) - In a victory for federal regulators, an administrative judge has found three former executives who worked for Allen Stanford's now-defunct brokerage liable for fraud and said they should banned from the industry. The ruling comes more than a year after Stanford was sentenced to 110 years in prison for bilking investors through a Ponzi scheme with fraudulent certificates of deposit issued by Stanford International Bank, his bank in Antigua.

U.S. high court to hear law firm appeals in Allen Stanford case

* Law firms sued over representation of Allen Stanford * Ponzi schemer sentenced to 110 years prison By Terry Baynes and Jonathan Stempel Jan 18 (Reuters) - The U.S. Supreme Court on Friday accepted appeals by law firms that once represented convicted swindler Allen Stanford and were trying to avoid lawsuits by victims seeking to recoup losses from his $7 billion Ponzi scheme.
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