White House backs banks in Supreme Court case

Lawyer Blogs

[##_1L|1083995532.jpg|width="100" height="112" alt=""|_##]The brief by the U.S. solicitor general contradicts a brief filed by the Securities and Exchange Commission, which argued for shareholders' rights to sue those third parties. "Allowing liability for a primary violation under the circumstances presented here would constitute a sweeping expansion of the judicially inferred private right of action" under securities law, wrote Solicitor General Paul Clement.

Such a move could expose customers, vendors and others to "billions of dollars in liability when issuers of securities make misstatements to the market," he wrote.
Clement wrote that allowing third parties to be sued would "vastly expand liability in unpredictable ways."

The case, Stoneridge Investment Partners v. Scientific-Atlanta, Inc., has attracted considerable interest from lawmakers and industry associations. On Tuesday, Senate Banking Committee Chairman Christopher Dodd, D-Conn., asked President Bush to back the SEC's position.

Meanwhile, Securities Industry and Financial Markets Association President Marc Lackritz said allowing third parties to be held liable would result in skyrocketing litigation costs for companies.

"Investors already receive substantial protections under the law, and the Securities and Exchange Commission and other securities regulators are already armed with all the necessary regulatory tools to recoup lost money for investors," Lackritz said.
Similarly, the U.S. Chamber of Commerce, a business trade group, had urged the court to reject the expanded liability, known in legal terms as "scheme liability."

"Congress authorized the SEC to enforce securities laws against third parties and disburse funds to harmed investors," said Robin Conrad, executive vice president of the National Chamber Litigation Center.

"The Supreme Court should not upset that legislative decision by allowing class action lawyers to increase litigation risk and further hamper the competitiveness of American markets," Conrad said.

The Supreme Court is scheduled to hear the case in its fall term.

Related listings

  • Brodsky & Smith, LLC Announces Settlement of Class Action

    Brodsky & Smith, LLC Announces Settlement of Class Action

    Lawyer Blogs 08/16/2007

    Brodsky & Smith, LLC announces that a Court has preliminarily approved a class action settlement in TDH Partners v. The Ryland Group, Inc., et. al. involving all persons who purchased or otherwise acquired common stock of the Ryland Group, Inc. (...

  • Ex-NBA Referee Pleads Guilty to Charges

    Ex-NBA Referee Pleads Guilty to Charges

    Lawyer Blogs 08/15/2007

    [##_1L|1124047923.jpg|width="120" height="101" alt=""|_##]Former referee Tim Donaghy pleaded guilty to two felony charges Wednesday in connection with the NBA betting scandal. Donaghy faces a maximum of 25 years in prison when he is sentenced for con...

  • Appeals court rules in Hanford downwinders' case

    Appeals court rules in Hanford downwinders' case

    Lawyer Blogs 08/15/2007

    In a sweeping ruling Tuesday, a federal appeals court overturned a judgment in favor of a woman who had sued contractors at the Hanford nuclear reservation for causing her thyroid cancer, but opened the door for three other plaintiffs to get a new tr...

Victorville CA DUI defense Attorneys

The outcome of a DUI defense will have a long-term effect on anyone’s life, making the decision to receive legal representation an easy one. The fact is, most people accused of a DUI are first offenders with no criminal background. Whether this is your first run in with the law or you have had previous convictions, you are in need of a DUI defense attorney.

The charges you are facing for a DUI range from fines, a 12-month suspension on your license and worst-case scenario, prison time. Your attorney will be able to analyze your situation to decide the best way to go about your case.

Our attorneys know the tricky ways to challenge all of the DUI tests and know how to claim improper collection of evidence. We will be able to negotiate on your behalf and free you from charges and help you keep your drivers license. The DUI process can last up to several months, we can make this process easier on you. .

Business News

St Peters, MO Professional License Attorney Attorney John Lynch has been the go-to choice for many professionals facing administrative sanction. >> read