By STEPHEN SINGER
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.)