Stanford investors’ lawsuit heads to federal court

Eighty-nine investors defrauded by now-imprisoned Houston financier Robert Allen Stanford want $115 million from seven insurance companies in addition to claims that could total as much as $1 billion against the Louisiana Office of Financial Institutions and SEI Investments Co.

But six of the insurers responded Monday by transferring the investors’ four-year-old state-court suit to Baton Rouge federal court, action the investors have fought hard in the past.

“We feel confident that this case should not be removed to federal court, because the state court has already ruled on it” and granted the investors class-action status, said Phillip W. Preis, Baton Rouge attorney for the investors.

Telephone and email requests for comment from three New Orleans attorneys for the insurance companies were not returned.

http://theadvocate.com/home/5409909-125/stanford-investors-lawsuit-heads-to

Cross-posted in Texas Group.