Madoff Customers' Claims Barred By Injunction, Automatic Stay, Judge Rules

Madoff Customers' Claims Barred By Injunction, Automatic Stay, Judge Rules

NEW YORK - Customers of Bernard L. Madoff Investment Securities LLC (BLMIS) are not entitled to bring a securities class action lawsuit against the estate of a former BLMIS investor that is subject to a $7.2 billion settlement agreement with BLMIS's liquidation trustee because class action claims are prohibited by a permanent injunction and an automatic stay on customer claims, a federal bankruptcy judge in New York ruled June 20 (Securities Investor Protection Corp. v. Bernard L. Madoff Investment Securities LLC, (In re Bernard L. Madoff), No. 08-1789, S.D. N.Y. Bkcy.). Subscribers may view the opinion available within the full article.

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