Allen Stanford investors file case action sue

A group of investors in the US city of Dallas has filed a class-action suit seeking compensation for what it calls the unlawful seizure of the Bank of Antigua, the commercial bank previously owned by Allen Stanford.



The suit was filed against the Eastern Caribbean Central Bank, five regional financial institutions and the government of Antigua and Barbuda.



Antiguan Attorney General Justin Simon said the Central Bank was justified in taking over the Bank of Antigua a year ago, in the wake of the fraud allegations against Stanford.



According to Mr Simon the Eastern Caribbean Central Bank had to pump millions of dollars into the Bank of Antigua to save it from falling.



Stanford is awaiting trial in the US for allegedly operating a US$7 million ponzi scheme.