November 28, 2010, 1:41 PM EST

Nov. 23 (Bloomberg) -- Six former National Football League players can’t pursue a lawsuit against the league and their union for allegedly failing to properly investigate financial advisers who lost $20 million of their money.

The funds had been invested with International Management Associates and its principal, Kirk Wright, who was convicted of fraud and money laundering by an Atlanta federal jury in May 2008 and later committed suicide. His firm had been listed in the union’s “Financial Advisors Program.”

U.S. District Judge Julie Carnes in Atlanta last year ruled that the players’ lawsuit, filed in 2006, was blocked by the existence of a collective bargaining agreement governed by the federal Labor-Management Relations Act.

“Because plaintiffs’ claims arise from or are substantially dependent upon interpretation of the terms of a collective bargaining agreement, we conclude those claims are preempted,” an Atlanta-based U.S. appeals court ruled today, upholding Carnes’ March 2009 decision.

Claiming Wright shouldn’t have been approved for registration in the NFL Players Association program, former New York Jets player Steve Atwater, New York Giants player Carlos Emmons, and the other players sued the union and the league for negligence, negligent misrepresentation and breach of fiduciary duty.

‘Soley Responsible’

The NFL argued that because the collective bargaining agreement expressly said “players shall be solely responsible for their personal finances,” the league could not be held liable, the appeals court said.

Players’ lawyer Joshua Littlejohn did not immediately reply to a voicemail message seeking comment. Greg Aiello, a spokesman for the New York-based league, declined to comment on the appeals court ruling.

NFLPA General Counsel Richard Berthelsen also did not immediately return a call seeking comment.

The case is Atwater v. National Football League Players Association, 09-12556, U.S. 11th Circuit Court of Appeals (Atlanta). The lower court case is Atwater v. National Football League Players Association, 06cv1510, U.S. District Court, Northern District of Georgia (Atlanta).