Madoff Investors' Suit Against SEC Tossed

Law360, New York (April 22, 2010, 2:41 PM EDT) -- The U.S. Securities and Exchange Commission is entitled to be incompetent in its investigations, a federal judge has ruled, dismissing a case brought by investors who say the commission should have done more to stop Bernard L. Madoff's Ponzi scheme.

The conduct of SEC examination and enforcement actions — and whether the commission takes action at all — is at the SEC's discretion, Judge Stephen V. Wilson of the U.S. District Court for the Central District of California said in a decision issued Tuesday.

Though he...
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