Scheme Liability, Section 10(b), and Stoneridge Investment Partners v. Scientific Atlanta (2 of 3)

October 5, 2007
Speakers:
Moderator: Craig Boise, Associate Professor and Associate Director, Center for Business Law and Regulation, Case Western Reserve University School of Law
Stephen M. Bainbridge, William D. Warren Professor of Law, University of California, Los Angeles, School of Law
James R. Copland, Director, Center for Legal Policy, Manhattan Institute for Policy Research
Andrea Seidt, Deputy Chief Counsel, Office of the Ohio Attorney General Marc Dann
Presented by: the Center for Business Law and Regulation
Cosponsored by: Corporate Law Practice Group of the Federalist Society for Law and Public Policy Studies

Summary: Supreme Court Preview Symposium
Panel Two The Costs & Benefits of Scheme Liability

On October 9, the U.S. Supreme Court will hear Stoneridge Investment Partners v. Scientific-Atlanta, arguably the most important securities law case to reach the Court in a decade. In Stoneridge, the Court will consider whether primary liability under Section 10(b) extends to third-parties, such as auditors, attorneys, or vendors, who engage in allegedly fraudulent transactions with a public corporation.

In Central Bank of Denver v. First Interstate Bank of Denver (1994), a divided Supreme Court rejected claims of secondary liability under Section 10(b). Stoneridge calls upon the court to revisit Central Bank and reconsider the limits on liability for third-parties in securities litigation.

This case is of tremendous importance to all those with a corporate law or securities practice, as well as those who work with financial services or retirement and pension funds. Numerous trade associations and thirty states, including Ohio, have already participated in the case as amici, with more to follow.

Category:

Education

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