RadioBDC Logo
Young Folks | Peter Bjorn and John Listen Live
THIS STORY HAS BEEN FORMATTED FOR EASY PRINTING

Court: Fla. must weigh arbitration in Madoff case

November 7, 2011

E-mail this article

Invalid E-mail address
Invalid E-mail address

Sending your article

Your article has been sent.

Text size +

WASHINGTON—The Supreme Court says the Florida courts should reconsider whether arbitration is required for claims against an auditing firm that worked on a fund that invested with Bernie Madoff.

The high court on Monday reversed a decision by a Florida appeals court. KPMG was sued by investors in the Rye Funds, which lost millions of dollars to Madoff's Ponzi scheme. KPMG was the auditor for the Rye Funds, and the investors said the company did not use proper auditing standards.

KPMG says its contract requires arbitration but the state courts would not allow it.

The Supreme Court ruled that the Florida courts only looked at part of the claims being brought against KPMG. The high court ordered the lower courts to investigate all of the claims before making a decision.

Boston.com top stories on Twitter

    waiting for twitterWaiting for Twitter to feed in the latest...