WASHINGTON (February 26, 2014) The U.S. Supreme Court says class-action lawsuits by investors who lost billions in former Central Texas tycoon R. Allen Stanford's massive Ponzi scheme can go forward.
The justices Wednesday ruled against individuals, law firms and investment companies that allegedly aided Stanford's fraud that wanted the lawsuits thrown out.
Federal law says class-action suits related to securities fraud cannot be filed under state law, as these suits were, but a federal appeals court said these could move forward because the main part of the fraud involved certificates of deposit, not stocks and other securities.
The high court agreed in a 7-2 decision.
Stanford is a Mexia native, Baylor University graduate and former Waco businessman.