2nd Circ. Pushed To Ax Madoff Investors' SEC Probe Suit

Law360, New York (November 19, 2012, 4:46 PM EST) -- The federal government on Monday urged the Second Circuit to reject an attempt by investors in Bernard Madoff's Ponzi scheme to revive their $2.4 million suit accusing the U.S. Securities and Exchange Commission of botching its probe into Madoff's investment firm.

The government argued that a New York federal judge properly dismissed the plaintiffs' suit for lack of jurisdiction based on the Federal Torts Claims Act's discretionary function exception, and that the Second Circuit should affirm that decision.

“The commission is vested with broad discretion by...
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