United States Second Circuit

Dismissal of plaintiffs' state law claims against defendant-banks alleging that various foreign investment vehicles secretly funneled investors' assets to Bernard L. Madoff Investment Securities, "a giant Ponzi Scheme," and defendant-banks had knowledge that Madoff Securities was violating its fiduciary duties and committing fraud, is affirmed, where the Securities Litigation Uniform Standards Act of 1998 (SLUSA) precludes plaintiffs' state law class action claims against defendant-banks because the claims are predicated on defendant-banks' involvement with the fraudulent securities transactions of Madoff Securities.

Appellate Information

• Decided 09/16/2013
• Published 09/16/2013

Judges

• RAKOFF

Court

• United States Second Circuit

Counsel