Madoff Trustee Not Unlike Ordinary Bankruptcy Trustees

Law360, New York (June 26, 2013, 4:32 PM EDT) -- A recent decision of the U.S. Court of Appeals for the Second Circuit affirmed decisions of the district court holding that the trustee appointed under the Securities Investor Protection Act to oversee the liquidation of Bernard L. Madoff Investment Securities LLC lacks standing to assert common law claims on behalf of Madoff’s customers against financial institutions that the trustee alleges aided and abetted Madoff’s fraud.

The decision resolved a split among lower courts by confirming that a 1978 decision, Redington v. Touche Ross & Co., 592...
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