Supreme Court Grants Review To Consider Whether Shareholders Can Assert “Scheme” Claims Against Secondary Actors

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Can shareholders of a company sue that company’s vendors, business partners, accountants, banks, or lawyers for participating in a “scheme” to issue materially misleading statements to shareholders? The Fifth and Eighth Circuit Courts of Appeal have said “no,” and the Ninth Circuit has said “sometimes.” The issue might now be settled relatively soon, because today the United States Supreme Court decided to review a case that should provide guidance on this important question. Stoneridge Investment Partners, LLC v.

Scientific-Atlanta, Inc., 549 U.S. ____ (U.S. 06-43 Mar. 26, 2007).

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