US top court says Stanford scam victims can sue lawyers, insurers

Sir Allen Stanford speaks in St John's on October 30, 2008The US Supreme Court ruled Wednesday that class action suits can be filed against third parties linked to Allen Stanford’s vast financial swindle, a decision that could have a major impact on victim compensation. In a seven to two decision, the high court ruled in favor of victims in Louisiana and Texas, who want to sue the legal firms, insurance companies and financial companies that they say enabled Stanford’s Ponzi. Stanford was convicted in June 2012 to 110 years in prison for the $7 billion scheme, marking a stunning fall from grace for the flamboyant Texas financier and cricket mogul. His conviction brought little financial relief to some 30,000 investors from more than 100 countries who were bilked by bogus investments with Stanford International Bank.

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