IBM Credit Union Members Settle Suit Over Ponzi Scheme

Law360, New York (February 3, 2012, 8:01 PM EST) -- An IBM Corp. employee credit union agreed Thursday to pay $950,000 in cash and turn over nearly $8 million in rights to a potential insurance payout to settle a class action alleging it negligently steered its members to an investment firm running a Ponzi scheme.

IBM Southeast Employees' Federal Credit Union members, who filed for approval of the settlement Thursday, first brought suit in 2009 alleging the credit union was negligent in selecting Wellstone Securities Inc. to provide brokerage services to its members.

Wellstone was created...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.