Madoff Investors' Lawsuit Against SEC Tossed

Law360, New York (April 19, 2011, 5:17 PM EDT) -- The U.S. Securities and Exchange Commission has immunity against claims brought by investors in Bernard Madoff's Ponzi scheme who blame the agency's incompetence for their losses, a New York federal judge said Tuesday.

U.S. District Judge Laura Taylor Swain threw out a $2.4 million suit two investors brought against the SEC, saying the agency had no legal duty to probe Madoff's scheme or competently handle any investigation it did conduct.

The ruling is another setback for Madoff investors who have turned to the courts to hold...
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