High Court Says Law Firms Can't Avoid Stanford Ponzi Suits

By Max Stendahl (February 26, 2014, 11:06 AM EST) -- Investors victimized by Robert Allen Stanford's $7 billion Ponzi scheme may sue Proskauer Rose LLP, Chadbourne & Parke LLP and others for allegedly aiding the fraud, the U.S. Supreme Court ruled Wednesday, finding that state law claims weren't precluded by federal law.

The high court in a 7-2 decision affirmed a Fifth Circuit ruling allowing four state-law class actions over the Ponzi scheme to move forward. The suits alleged Proskauer, Chadbourne, two insurance brokers and a financial services firm aided the Ponzi scheme, in which Stanford's foreign bank sold investors sham securities called certificates of deposit. Stanford was sentenced to 110...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!