For years, investors in R. Allen Stanford’s $7 billion Ponzi scheme have been struggling to eke out any significant recoveries. But things are looking up for Stanford’s 21,000 global investors, not to mention the lawyers representing them on a contingency basis.
Unable to knock out a series of investor suits, four banks and four former law firms that serviced Stanford’s business empire are increasingly feeling the pressure from plaintiffs asserting billions of dollars in claims. As the defendants fight to overturn their courtroom losses—and to find out if they must face the plaintiffs as a class—counsel for the investors are now enjoying the advantage.
