Bilked Investors Can't Sue Madoff Family, 2nd Circ. Says

Law360, New York (February 20, 2013, 8:02 PM EST) -- The Second Circuit on Wednesday affirmed a ruling barring several prominent Bernard L. Madoff victims from directly suing the convicted Ponzi schemer's family to try to recover their losses, saying a lower court properly enjoined such suits to allow maximum recovery for Madoff’s bankruptcy creditors.

In its summary order, a three-judge panel agreed with U.S. District Judge Alvin K. Hellerstein that allowing burned investors to mount their suits against the Madoff clan could spawn a mass of litigation that could interfere with trustee Irving Picard's efforts...
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