Supreme Court allows Texas tycoon's Ponzi scheme suits to proceed

SAM HANANEL | AP
Published: 02/27/2014

WASHINGTON (AP) — The Supreme Court ruled Wednesday that the victims of former Texas tycoon R. Allen Stanford’s massive Ponzi scheme can go forward with class-action lawsuits against the law firms and investment companies that allegedly aided the 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.

Federal law says class-action suits related to securities fraud cannot be filed under state law, as these suits were.

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