2nd Circ. Says Madoff Suits Can't Sidestep Ch. 11 Injunction

Law360, New York (January 13, 2014, 4:33 PM EST) -- A New York bankruptcy judge correctly blocked two class actions filed by plaintiffs seeking to recover damages from the estate of one of the major beneficiaries of the Ponzi scheme, the Second Circuit ruled Monday, saying the suits sought to "plead around" a Chapter 11 injunction.

Named plaintiffs Susanne Stone Marshall and Adele Fox had targeted the estate of Jeffrey Picower with complaints in Florida federal court alleging violations of various Sunshine State laws — including the Florida Civil Remedies for Criminal Practices Act.

The plaintiffs...
To view the full article, register now.