SEC Loses Bid to Get SIPC to Pay Stanford Ponzi Claims

Kirkland served as counsel representing SIPC against the Securities and Exchange Commission (SEC) in the first ever lawsuit brought by the SEC against SIPC in SIPC's 42 year history.

"A federal judge on Tuesday rejected the Securities and Exchange Commission's lawsuit against an agency that insures U.S. brokerage accounts to force it to pay investors in R. Allen Stanford's $7 billion Ponzi scheme.

The dispute hinged on how SIPC's mission is interpreted and builds on the SEC's bid to protect investors more aggressively in the wake of several high-profile cases. SIPC maintains a special reserve fund authorized by Congress to compensate investors who lose money in failed brokerage firms."

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This article appeared in its entirety in the July 3, 2012 edition of The Wall Street Journal.