Madoff Victims May Proceed With Suit Against Attorney

Victims of Bernie Madoff’s Ponzi scheme convinced a federal magistrate judge April 11 that their class action against the attorney who represented them belongs in federal court.

The investors sued Becker & Poliakoff LLP and Chaitman LLP alleging attorney Helen Chaitman improperly represented clients with competing interests while at the two firms.

The case is properly before the federal court under the Class Action Fairness Act and shouldn’t be dismissed, Magistrate Judge James L. Cott wrote in a report and recommendation.

The case stems from the liquidation of Bernard L. Madoff Investment Securities LLC. Chaitman represented both net winners (who ...