Second Circuit Holds that Madoff Trustee Lacks Standing to Assert Common Law Claims on Behalf of Customers

A recent decision of the United States Court of Appeals for the Second Circuit affirmed decisions of the district court holding that the trustee appointed under the Securities Investor Protection Act (“SIPA”) to oversee the liquidation of Bernard L. Madoff Investment Securities LLC (“BLMIS”) lacks standing to assert common law claims on behalf of Madoff’s customers against financial institutions that the trustee alleges aided and abetted Madoff’s fraud.