Former Stanford investors sue Le Bonheur, St. Jude

By Jason Miles - bio | email

MEMPHIS, TN (WMC-TV) - St. Jude Children's Research Hospital and Le Bonheur Children's Hospital are being sued by investors who lost money in the Stanford Financial collapse.

The lawsuit was filed Tuesday night in a Dallas federal court, two years after R. Allen Stanford and three former big wigs were first accused in a huge investment scheme.

Now, of the investors who lost money want it back, and are seeking more than $7 million from St. Jude and the Le Bonheur Children's Hospital Foundation.  Both hospitals benefited from donations, including when Stanford sponsored the St. Jude golf championship.

In a statement released Wednesday afternoon, St. Jude Chief Marketing Officer Emily Callahan said, "While our hearts go out to those impacted by the Stanford investment issues, it would hurt our charitable mission to have to return the money already spent directly on clinical care and support for children suffering from cancer and other deadly diseases."

A spokesperson from Le Bonheur released a statement that had the same tone.

The Stanford Investment Group has also sued a number of other entities for millions of dollars. Meanwhile, R. Allen Stanford still awaits trial.

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