Stoneridge Bill Sparks Enforcement Debate

Law360, New York (October 13, 2009, 6:38 PM EDT) -- Pending legislation proposing to reverse the U.S. Supreme Court's recent ruling in Stoneridge Investment Partners LLC v. Scientific-Atlanta Inc. has revived a heated debate over how best to ensure that aiders and abettors to securities fraud don't go unpunished.

S. 1551, the Liability for Aiding and Abetting Securities Violations Act of 2009, was introduced by Sen. Arlen Specter, D-Pa., in July. The bill seeks to authorize a private right of action against any individual or entity providing “substantial assistance” to securities fraud, which would revive the...
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