Madoff Victims Can't Sue SEC, 3rd Circ. Says

Law360, New York (July 1, 2013, 5:09 PM EDT) -- The Third Circuit ruled Monday that several victims of Bernie Madoff’s Ponzi scheme don’t have the authority to sue the U.S. Securities and Exchange Commission for their losses because they failed to show that SEC employees violated mandatory policies or guidelines when investigating him. 

The circuit court’s decision upholds a district court ruling that said the plaintiffs, who were customers of Bernard L. Madoff Investment Securities LLC, failed to overcome an exception under the Federal Tort Claims Act that protects the government from lawsuits stemming from...
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