5th Circuit Rules for Investors in Stanford Clawback Action
The 5th Circuit has denied an attempt by the Stanford International Bank receiver to keep investors' assets frozen, ruling that the receiver failed to show that investors were "relief-defendants" who could be sued in a clawback action and that the lower court lacked authority to freeze their assets. The decision will affect more than 500 investors who have been unable to get at money that was in their Stanford accounts when the SEC won a freeze order after discovering Allen Stanford's alleged fraud.
