High Court To Rule On Securities Suits Against Vendors

Law360, New York (March 26, 2007, 12:00 AM EDT) -- The U.S. Supreme Court has decided to review whether securities lawsuits can be brought against outside vendors for engaging in transactions that were associated with another company’s fraudulent accounting activities.

The justices, who accepted one of two pending cases on the matter Monday, will hear a lawsuit in which Charter Communications Inc. was accused of overstating its revenue.

Charter purportedly paid cable box vendors Scientific-Atlanta Inc., which has become a unit of Cisco Systems Inc., and Motorola Inc. additional money for cable control boxes, and in...
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