5th Circ. Makes U-Turn On Arbitration In Stanford Suit

Law360, New York (July 22, 2011, 7:19 PM EDT) -- The Fifth Circuit on Friday undid an earlier decision that would have allowed the receiver trying to recover money for victims of Texas financier Robert Allen Stanford’s alleged $7 billion Ponzi scheme to avoid arbitration, but confirmed an asset freeze on former Stanford employees.

The appeals court issued a new opinion in the case that confirmed its previous stance that the district court didn’t abuse its discretion when it ordered the asset freeze and that its injunction wasn’t overly broad.

“The ... opinion confirms a number...
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