The Supreme Court said Monday it will consider whether shareholders of companies that commit securities fraud should be able to sue investment banks, lawyers and others that allegedly participated in the fraud. The case will be closely watched on Wall Street and in law firms as federal appeals courts have split on whether such "secondary actors" can be held liable. Last week, the 5th Circuit ruled against a class action lawsuit against several investment banks over their alleged role in Enron's collapse.
High Court to Consider Liability of 'Secondary Actors' in Securities Fraud
The Associated Press
March 27, 2007