Devoted to Corporate Attorneys, Corporate Lawyers, and Corporate Counsel

The following is not meant to be legal advice.

On October 9, 2007, the United States Supreme Court heard argument in Stoneridge Investment Partners, LLC v. Scientific-Atlanta, Inc.  The case is about how a plaintiffs may bring securities class action suits. The main issue in Stoneridge is whether shareholders can bring suit against third parties who are alleged to have made no misstatements themselves.  These third parties engage in deceptive conduct to further fraud by helping the issuer make false and misleading statements.

The court did not appear to find a private right of action for the deceptive practices at issue in the case.  The court seemed to deem such action for the legislature or Congress.