Local News

Appellate Court Rules Against Connecticut Town In Madoff-Inspired Suit

View Comments
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.)

View Comments
blog comments powered by Disqus

Get every new post delivered to your Inbox.

Join 1,407 other followers