Two investors sued The Securities and Exchange Commission under The Federal Tort Claims Act in New York alleging that The SEC was "grossly negligent " in it's handling of "The Madoff Investigation "between 1992 and 2008.
While Federal District Court Judge Laura Swain agreed that the SEC's investigations of Madoff over a 15 year period had been "flawed in numerous respects" , she dismissed the action concluding the action was barred by the "discretionary function exception " to the Tort Claims Act. She did go on to note that plaintiffs failed to identify any mandatory duty that the SEC violated. Interesting to see if plaintiffs will seek leave to amend their complaint to "identify a specific duty " that the SEC violated.
Either way, case was and is a "real long-shot "! Hey, another paying case for the attorneys.
Wonder if attorneys, Herrick, Feinstein advised plaintiffs that this was basically an unwinnable suit....Your thoughts?
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