Class Accuses SEC Of Negligence In Handling Madoff

Law360, New York (November 15, 2010, 7:19 PM EST) -- The U.S. Securities and Exchange Commission has been hit with a class action accusing the regulator of negligence when it repeatedly failed to heed warnings about Bernard Madoff's $65 billion Ponzi scheme.

The complaint alleges the SEC “serially disregarded” allegations it received over a 16-year period about Madoff and his company, Bernard L. Madoff Investment Securities LLC, according to an amended complaint filed Monday by Gaytri D. Kachroo of Kachroo Legal Services PC.

The SEC, "like a board of directors under the business judgment rule," had...
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