Some Stanford Ponzi Investors Sidelined in Suit Against Banks

Dozens of individuals and investment funds acted too late when seeking to protect their interests in a suit against banks in connection with the vast Allen R. Stanford Ponzi scheme, but those interests will be adequately protected by a committee, the Fifth Circuit ruled Wednesday.

The investors asked to intervene shortly after receiving what they called confusing messages from the Official Stanford Investors Committee about its standing to bring claims on their behalf. But the proper time to intervene would have been earlier, when the lower court declined to certify a class, Judge Leslie H. Southwick said for the U.S. ...