The U.S. Supreme Court ruled in a major securities fraud case that secondary parties--essentially aiders and abettors--can't be held liable when the companies they work with mislead investors.
Stoneridge Investment Partners LLC v. Scientific-Atlanta Inc., et al., docket no. 06-43, threatened to expand the reach of investor lawsuits beyond parties that misrepresent facts to investors. Specifically, the Supreme Court on Jan. 15 affirmed a lower court ruling that barred the investor lawsuit against the secondary parties, which, it found, made no statements relied upon by the investors and were at most aiders and abettors in the Stoneridge case.
Stoneridge, an investment ...