Stanford Hit With Investor Class Action

Law360, New York (February 20, 2009, 12:00 AM EST) -- Investors blasted Stanford International Bank Ltd. with a putative class action Thursday, three days after federal regulators accused billionaire Robert Allen Stanford, the bank’s chairman and sole shareholder, of operating an $8 billion fraud with ties to the Madoff imbroglio.

The complaint, lodged Thursday in the U.S. District Court for the Southern District of Texas, claims Stanford International Bank “fraudulently peddled” certificates of deposit that promised superior rates of return and deceived investors about the high-risk, illiquid investments the bank in fact executed.

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