Court Tosses 26 Actions Against SEC Over Madoff Fraud

Law360, New York (June 15, 2011, 12:55 PM EDT) -- A New York federal court on Tuesday nixed 26 lawsuits filed against the U.S. Securities and Exchange Commission by victims of Bernard Madoff’s Ponzi scheme, after ruling that the agency was immune from investor actions over its failure to detect the fraud.

The court dismissed the 26 suits for lack of subject matter jurisdiction, rejecting the investors’ request for further discovery and to stay the litigation pending an appeal of the fatal decision in the previous case.

“Federal Rule of Civil Procedure 12(h)(3) provides that ‘[i]f...
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