Stoneridge Decision

Yesterday the U.S. Supreme Court issued its  decision in the much anticipated securities litigation case of Stoneridge Investment Partners LLC v. Scientific Atlanta Inc. In a 5-3 opinion, the Court held that  shareholders cannot sue third parties (such as accountants and lawyers) charged with aiding a corporation that has defrauded its investors. The ruling upholds two lower court decisions. As we have discussed before (see our October 9, 2007 posting), a decision in favor of investors would have exposed U.S. companies as well as those doing business with them to the likelihood of significant additional costly shareholder suits. Further commentary on the Stoneridge case can be found at The D&O Diary, a blog focused on D&O liability issues.  

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