Law360, New York (September 17, 2007, 12:00 AM ET) -- The first time James D. Cox, the Brainerd Currie Professor of Law at Duke University, saw an articulation of the theory of “scheme liability,” it was in a friend-of-the-court brief in the securities action against underwriters of now-defunct energy giant Enron Corp.
“It said, 'These investment bankers can be deemed to be making statements if they're part of a scheme that gives rise to a false representation,'” Cox explained.
“I think if you're enabling the lie, you should be responsible,” he added, and he has signed...
"Scheme Liability" Awaits High Court Scrutiny
To view the full article, take a free trial now.
