Is Stoneridge The Death Knell For Scheme Liability?
January 16, 2008, 12:00 AM EST
Law360 (January 16, 2008, 12:00 AM EST) -- Yesterday, the United States Supreme Court reaffirmed the limited reach of private securities fraud actions. The Court held that securities purchasers do not have an implied private right of action for federal securities fraud claims against secondary actors who neither speak nor have a duty to speak because such investor plaintiffs cannot rely upon the defendants’ alleged deceptive conduct.
Importantly, the Court’s decision in Stoneridge Investment Partners LLC v. Scientific-Atlanta Inc., 06-43, rejected the theory of “scheme liability” that had recently found favor with some lower...