The lawsuit by Oxford law professor Guthrie Abbott, his wife and sister-in-law stays alive against former Stanford manager/adviser John Mark Holliday of Tupelo, thanks to a recent ruling to Chancellor Kenneth Burns.
Holliday had asked the court to dismiss the lawsuit, seeking to recover $750,000 the trio claims they lost in bogus certificate of deposit purchases through Stanford.
Nov. 30, Burns dismissed Holliday’s motions saying their claims aren’t related to a Texas federal receivership of Stanford assets and that they aren’t bound to go to arbitration because their contract never was signed, as required, by a third Stanford Group party.
A similar lawsuit against Stanford ex-adviser Neal Clement by Tupeloan Walt Walton, seeking return of $430,183 CD investments, also asserts Walton isn’t bound to arbitration for the same reason.
The Walton case is before Chancellor Jacqueline Mask, who hasn’t ruled on Clement’s defense motions.
In U.S. District Court in Aberdeen, two lawsuits against former Stanford broker-adviser David Haggard of Georgia got notice Wednesday that he’s filed for bankruptcy.
U.S. District Judge Sharion Aycock dismissed one lawsuit against him by the Paschal family, seeking $26.8 million of losses in Stanford certificates of deposit.
But the case can be reopened, if Aycock considers that action appropriate, the dismissal order says.
The second case, by the Shapley brothers, seeks return of $3.25 million in investment losses from Haggard. The Shapleys also were notified of the bankruptcy filing although no other action has occurred about their lawsuit, according to the court’s data system.
Numerous Stanford investors, like Abbott and Walton, have sued their financial advisers because top company executives’ and corporate assets were frozen by a federal civil lawsuit.
Stanford holdings collapsed earlier this year with a Securities and Exchange Commission investigation into its Antigua bank.
Federal criminal charges also are pending against ex-CEO Allen Stanford and others in Texas.
Patsy Brumfield/NEMS Daily Journal