03.01.2008 Supreme Court Rejects “Scheme Liability” Under Federal Securities Laws
03. 2008
The U.S. Supreme Court recently issued a much anticipated decision regarding investors' ability to recover damages against secondary actors under federal securities laws. In Stoneridge Investment Partners, LLC v. Scientific-Atlantic, Inc., the Court ruled that the implied right of action in Section 10(b) of the Securities Exchange Act of 1934 did not reach the suppliers of a public corporation, because the corporation's investors did not rely upon any statements or representations of those suppliers when making their investment decisions.

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