Madoff investors' lawsuit against SEC thrown out

April 19, 2011 4:56 PM EDT

A federal judge dismissed a lawsuit by two of Bernard Madoff's former customers accusing the U.S. Securities and Exchange Commission of negligence for failing to uncover the now-imprisoned swindler's Ponzi scheme.

U.S. District Judge Laura Taylor Swain said the plaintiffs failed to identify any statute or rule governing how the SEC should have been investigating Madoff prior to his December 2008 arrest.

Howard Elisofon, a lawyer for the investors, said he was disappointed with the ruling, and is talking with his clients about their next step.

An SEC spokesman did not immediately return a phone call seeking comment.

(Reporting by Jonathan Stempel; Additional reporting by Grant McCool, editing by Gerald E. McCormick)

Follow us

Copyright 2012 Thomson Reuters. All rights reserved.
Sponsor Link:

We recommend

News From Partners

More from Finance

Join the Conversation

Popular Multimedia

IBTimes TV
More

Women Vote For The First Time In Egypt

Most Viewed

1 2 3
  1. IMG TXT
    Paris' Crazy Horse Topless Dancers on Strike Over Pay Raise
  2. IMG TXT
    Facebook Shares Fall Sharply in Morning Trade Following Shaky IPO
  3. IMG TXT
    Salvage Operation to Bring the Capsized Costa Concordia to the Surface Begins
  1. IMG TXT
    A Pair of Jaguar Cubs Are Born and Prepare for Their Public Debut
  2. IMG TXT
    Where You Can See the 'Ring of Fire' Solar Eclipse This Sunday
  3. IMG TXT
    Mary Kennedy, Estranged Wife of Robert F. Kennedy Jr., Found Dead
  1. IMG TXT
    Wall Street Falls Before G8 Leaders Meet on Eurozone, Historic Facebook IPO Marred by Trading Glitches
  2. IMG TXT
    Stocks Fell as the S&P 500 Index Hit 4-Month Low
  3. IMG TXT
    Gay Activists Attacked in St. Petersburg on 'International Day of Fighting Homophobia'
Most Read
  1. Insight: Morgan Stanley cut Facebook estimates just before IPO
  2. Bulgarian capital shaken by 5.6 magnitude quake
  3. Facebook shares drop again as SEC, FINRA call for review
  4. After Yahoo deal, challenges abound for Alibaba
  5. China plans brokerage reforms to create its own Goldman Sachs

World
Canada Commits 300 Million to Afghanistan, But No Troops

Recommended for you
Close
  1. Insight: Morgan Stanley cut Facebook estimates just before IPOIn the run-up to Facebook's $16 billion IPO, Morgan Stanley, the lead underwriter on the deal, unexpectedly delivered some ne...
  2. Bulgarian capital shaken by 5.6 magnitude quakeA 5.6 magnitude earthquake shook Bulgaria's capital Sofia early on Tuesday, causing residents to rush into the streets, the civil defence office said.