16 January 2008
16 January 2008 - In a case argued by Mayer Brown partner Stephen Shapiro and previously described by the Wall Street Journal as "the biggest securities-litigation court clash in a generation," the Supreme Court yesterday affirmed that third parties who do not themselves mislead investors cannot be held liable for damages under Section 10(b) of the Securities Exchange Act even if their conduct facilitates the fraud of another. The decision, in Stoneridge Investment Partners v. Scientific-Atlanta, Inc., No. 06-43, is the latest in a long series of Mayer Brown victories for the business community. Last term Mayer Brown represented the prevailing parties in two major antitrust cases, Credit Suisse First Boston v. Billing, 127 S. Ct. 2383 (2007), and Weyerhaeuser Co. v. Ross-Simmons Hardwood Lumber Co., 127 S. Ct. 1069 (2007), and in Philip Morris USA v. Williams, 127 S. Ct. 1057 (2007), a ruling expected to impose new curbs on the use of punitive damages across the country. Given its significance, yesterday's Stoneridge decision is discussed in many news outlets, including the New York Times, Wall Street Journal, Washington Post, Los Angeles Times, Forbes, and Business Week. A summary of the decision is available here.