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...
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