Stoneridge is in! Supremes Rein in Investor Suits (Thank you, SCOTUS)

Wall Street Journal Law Blog ^ | 1/15/08 | Ashby Jones

[TheDoctorNoh]

This just in: The much-ballyhooed Stoneridge case has come down. Here’s the opinion. The Supreme Court has voted 5-3 that investors can’t bring private lawsuits against third parties in corporate-fraud cases unless they relied on actions by those parties when making investment decisions. (Justice Breyer did not participate in the case.) Here’s the early story from Dow Jones Newswires. For earlier Law Blog posts on Stoneridge, click here, here and here. Here, also, is an exchange on the issues from last year between two securities-law heavyweights.

The case centered on the issue of “scheme liability,” i.e., whether third parties — investment bankers, lawyers, accountants and vendors — can be held liable under the federal securities laws for fraud committed by companies with which they do business.

[TheDoctorNoh]

The far left and the plaintiffs bar are practically apoplectic with this SCOTUS decision today, meaning the Supremes ruled correctly.

Thank you Presidents Reagan, Bush 41/43 for Roberts, Scalia, Thomas, Alito and Kennedy.

Bush 41: I still say you really blew it with Souter though...can't win them all, I guess.

[Jacquerie]

Bush 41: I still say you really blew it with Souter though...can't win them all, I guess.

Had Robert Bork been aboard these past 20 years . . .

[TrueKnightGalahad]

Reading the comments at the link is a hoot! Within minutes, lefty moonbats crawled out to lambaste the decision and the SCt, screeching that it was a “sellout” of the peeepuuul because business = bad, no matter what the facts are or where the responsibility for the Charter fraud actually resides. Too large a percentage of our population either cannot or will not think....and unfortunately, a large portion of the minority that actually does think cannot do it very well. (Hat tip to RAH)