And we have a decision... As I suspected, and informally predicted, the Supreme Court has ruled in favor of the defendants, Scientific-Atlanta and Motorola, in the Stoneridge case. You can read the slip opinion here.
Business defendants in securities class action lawsuits have long felt that plaintiffs attorneys cast a wide net in naming defendants, hoping to find the deepest pockets in cases that seek joint and several liability. But wait - you say - surely a court won't hold businesses liable who didn't have anything to do with the securities fraud. Ah, but securities class action litigation is very expensive to defend, so most companies would prefer to settle rather than face those ridiculous costs. And if they're not named as defendants in the first place, then they can avoid paying large settlements when they did nothing wrong.
Makes sense, right? Except that the question of when one company can be held liable for securities fraud committed by another company does not have a simple answer. The Stoneridge case sought to clarify the category of liability for "aiders and abetters." But I better stop here, because I really just wanted to whet your appetite for the article I've been working on...
To read more about the decision, check out this article.
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The Brief Case is devoted to legal news and analysis for businesses and attorneys. I will feature issues of interest to corporate lawyers or their clients, as well as legal issues that are just plain fascinating.
About Me
- Emily Finger
- Minnetonka, Minnesota, United States
- Emily is a solo practitioner specializing in business law, estate planning, and general litigation. Her office is located in Minneapolis, Minnesota. She is an active member of local bar associations and business groups, as well as a Six Sigma Green Belt. Contact Emily at www.emilyfingerlaw.com for information regarding curriculum vitae, presentations, and services.