Ahders v. SEI Private Trust Co., No. 20-30186 (5th Cir. 2020)Annotate this Case
This case arises out of R. Allen Stanford's Ponzi scheme. Plaintiffs filed suit against SEI and SEI's insurers, seeking to hold SEI liable under the control-person provision of Louisiana Securities Law. In this case, plaintiffs allege that SEI is liable for STC's violations under the control-person provision of Louisiana Securities Law based on SEI's contractual relationship with STC.
The Fifth Circuit affirmed the district court's grant of summary judgment to SEI and its insurers, holding that SEI was not a control person under the statute. The court need not determine whether the investors must establish that SEI had control over STC's day-to-day operations because plaintiffs fail to demonstrate a genuine dispute of material fact that SEI directly or indirectly controlled STC's primary violations. Because the district court properly granted summary judgment to SEI, the court also affirmed the district court’s grant of summary judgment on all claims against the insurers.