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Appellate Court Rules Against Connecticut Town In Madoff-Inspired Suit

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File photo of a gavel (Photo by Joe Raedle/Getty Images)

File photo of a gavel (Photo by Joe Raedle/Getty Images)

Associated Press

HARTFORD, Conn. (AP) – The Connecticut Appellate Court has ruled that the town of Fairfield may not make claims for losses due to disgraced financier Bernard Madoff’s fraud.

The state’s second highest court ruled 3-0 Wednesday that a Stamford Superior Court judge had correctly decided that Fairfield was only indirectly affected by the actions of two partners in an investment firm accused of conspiring with Madoff.

As a result, the judge said Fairfield does not have standing to claim for $42 million its pension fund lost.

Richard Robinson, a lawyer representing the town, said the town had direct contact with people involved in a conspiracy with the two partners.

The Appellate Court also said Fairfield did not allege that Peter B. Madoff, the investor’s brother, played a role in inducing the town to invest, which it said undermines the town’s lawsuit.

     (Copyright 2011 by The Associated Press.  All Rights Reserved.)

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