Stoneridge and the Race for Amicus Briefs
There is an interesting article from the front page section of the Wall Street Journal today concerning the Stoneridge Investment Partners LLP v. Scientific-Atlanta, et al, case that was heard by the US Supreme Court today. The Stoneridge case concerns whether private investors may sue third-parties such as accountants or lawyers that allegedly participate in a scheme to defraud shareholders and thus violate Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5. A summary and analysis of the oral argument has been posted here by the Akin Gump SCOTUS blog.
The Wall Street Journal article focuses primarily on the background of the race to get “friend of the court” briefs prepared and filed with the Court by numerous prominent names in politics and the economy. The plaintiffs have obtained support from “two House committee chairmen, 18 pension funds, 32 state attorneys general, and the SEC itself. Backing big business: the U.S. Chamber of Commerce; the Nasdaq and NYSE Euronext exchanges; seven high-profile New York lawyers; and the Justice Department's solicitor general, who represents the views of the White House.”
According to the SCOTUS blog summary of the oral argument, despite the plaintiffs’ rush to obtain support by amicus, it does not appear that the Court was receptive to the possibility of providing investors with a broad new category of liability to investors. A decision on this case is expected by the spring.
