Second Circuit Rules Madoff Victims Barred from Bringing Claims Against Securities and Exchange CommissionBy Katie Chaverri
On Wednesday, a three-judge panel of the Second Circuit Court of Appeals in New York upheld the dismissal of lawsuits brought by Madoff investors against the Securities and Exchange Commission, the U.S. securities regulator. While the court found that the SEC’s actions and inactions were “regrettable”, the court ultimately held that the SEC was protected by a law that shields federal agencies from liability. The case is Molchatsky v. United States, Case No. 11-2510 (2d. Cir. Ct. of Appeals).