Stanford Employees Ask 5th Circ. To Force Arbitration

Law360, New York (September 29, 2011, 2:50 PM EDT) -- Former employees of Robert Allen Stanford asked the Fifth Circuit on Wednesday to overturn a Texas federal judge's refusal to force arbitration of their disputes with the receiver trying to recover funds tied to Stanford's alleged $7 billion Ponzi scheme.

The Fifth Circuit had previously ruled that the dispute wasn't subject to arbitration, but later changed its mind and vacated the ruling, saying the issue had not been properly appealed. Despite the about-face, U.S. District Judge David C. Godbey adopted the appeals court's reasoning as his...
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