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High court tells Florida courts to reconsider arbitration of claims in Madoff case
WASHINGTON (AP) ' The U.S. Supreme Court says the courts in the state of Florida should reconsider whether arbitration is required for claims against an auditing firm that worked on a fund that invested with disgraced Wall Street financier Bernie Madoff.
The high court on Monday reversed a decision by a Florida appeals court. KPMG was sued by investors in the Rye Funds, which lost millions of dollars to Madoff's pyramid scheme. KPMG was the auditor for the Rye Funds, and the investors said the company did not use proper auditing standards.
KPMG says its contract requires arbitration but the state courts would not allow it.
The Supreme Court ruled that the Florida courts only looked at part of the claims being brought against KPMG. The high court ordered the lower courts to investigate all of the claims before making a decision.