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SEC Invokes Immunity in Negligence Suit by Madoff Victims

December 16th, 2009

Just in time to mark the one-year anniversary of the Madoff scandal, the Securities and Exchange Commission moved Monday to dismiss a suit by two Madoff victims who want to hold the agency accountable. Attorneys at Herrick Feinstein sued the SEC in New York federal court under the Federal Tort Claims Act on behalf of two Madoff investors who together lost more than $2.4 million. The SEC argues it cannot be held liable because its activities fall under a “discretionary functions” exception to the FTCA.

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SEC Invokes Immunity in Negligence Suit by Madoff Victims

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