2nd Circ. Bans RICO Claim In Madoff Investor Suit

Law360, New York (July 7, 2011, 5:37 PM EDT) -- The Second Circuit on Thursday nixed the remainder of an investor suit alleging JPMorgan Chase & Co. aided Bernard Madoff’s massive Ponzi scheme, setting the stage for a possible appeal to the U.S. Supreme Court.

A three-judge panel ruled that the plaintiff, MLSMK Investment Co., couldn't pursue a civil racketeering allegation — the final claim in the suit — because it was precluded by an amendment to the Private Securities Litigation Reform Act.

The decision marks the first time the circuit court has ruled on the...
To view the full article, register now.