U.S. justices say Allen Stanford victim lawsuits can go forward

WASHINGTON Wed Feb 26, 2014 10:07am EST

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WASHINGTON Feb 26 (Reuters) - The U.S. Supreme Court on Wednesday ruled that lawyers, insurance brokers and others who worked with convicted swindler Allen Stanford cannot avoid lawsuits by investors seeking to recoup losses incurred in his $7 billion Ponzi scheme.

On a 7-2 vote the court held that lawsuits filed in state court can go forward. New York-based law firms Chadbourne & Parke and Proskauer Rose and insurance brokerage Willis Group Holdings Plc were all sued by former Stanford investors. The investors also sued financial services firm SEI Investments and insurance company Bowen, Miclette & Britt. (Reporting by Lawrence Hurley; Editing by Howard Goller)

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