Stoneridge May Prove Fatal To Enron-Related Action

Law360 (January 15, 2008, 12:00 AM EST) -- A multibillion-dollar class action accusing several prominent investment banks of helping hide Enron Corp.'s massive securities fraud received two jolts Tuesday, making it likely — though, some lawyers insisted, not assured — that the case could end as soon as Monday.

First, in Stoneridge Investment Partners LLC v. Scientific-Atlanta Inc., the U.S. Supreme Court barred shareholder lawsuits against third parties whose deceptive acts contributed to another party's fraud but never directly reached investors, a category into which the Enron action falls.

And second, the Enron shareholders'...
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