It is a theory that will not die. Fifteen years have passed since the Supreme Court drove a stake through the heart of aiding and abetting securities fraud in Central Bank v. First Interstate Bank (1992). It came back like a zombie half-alive in the Private Securities Litigation Reform Act of 1995 as a concept that only the Securities and Exchange Commission could use (or love).
Now the question before the Supreme Court in Stoneridge Investment Partners v. Charter Communications, with oral argument today, is whether liability under the federal securities laws — Rule 10b-5 — extends to silent partners in a fraudulent scheme.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]