The Second Circuit declined to overrule the lower court’s approval of a $50.3 million settlement between an investor class and Fairfield Greenwich Ltd., a hedge fund that funneled $7 billion in the Madoff Ponzi scheme. Other defendants in the case had argued that any entity participating in the settlement could not pursue claims in any other jurisdiction. The Second Circuit did not agree and held that “Nothing in the final order precluded non-settling defendants from asserting in the District Court or in other litigation any claims or defenses that may be available to them.”
The Supreme Court declined to review the dismissal of the Madoff trustee’s claims against banks such as HSBC Holdings Plc, that were dismissed on the grounds that the Trustee did not have standing and on the basis of the in pari delicto doctrine.
The Supreme Court declined to review the dismissal of claims brought by the receiver of the Allen Stanford businesses against Stanford employees. The lower court had held that the receiver did not have standing to bring the claims.