In case you were wondering how long it would take, you should know that investors have already filed the first securities class action lawsuit in connection with the fraud allegations surrounding R. Allen Stanford and his Stanford Financial Group.
On February 17, 2009 — the same day as the SEC announced its charges that Stanford had engaged in a "multi-billion dollar investment scheme" — plainiff investors filed a securities class action lawsuit against Stanford and his related entites, as well as several other individual directors and offficers, in the Southern District of Texas. The complaint, which can be found here, is filed on behalf of all persons who purchased securities and CDs from Stanford and affiliated selling agents from January 1, 2000 through February 17, 2009.
Though many of the Stanford investors reportedly are domiciled abroad (particularly in Latin America), the named plaintiffs in this initial lawsuit are all residents of the Houston area. The defendants include not only Stanford and his Houston-based firm but the affilated bank, based in Antigua.
The complaint describes the allegedly aggressive sales efforts undertaken to sell the affilated bank’s CDs. The complaint alleges that the sales efforts misrepresented the safety and security of the CDs. The complaint also alleges that the Stanford affilated entitles misrepresented their performance and investment returns. The returns are alleged to have been "misleading and inflated."
Call it a hunch, but I suspect this complaint is only the first of many that will be filed in the days, weeks and months ahead.