The U.S. Supreme Court recently issued its opinion in Stoneridge. The court concluded that certain nonspeaking defendants were not liable under Section 10(b) of the Securities Exchange Act of 1934 because the investors at issue did not rely on anything these defendants said or did. The inability to plead reliance as to these defendants � a critical element of a cause of action under Section 10(b) � required dismissal. The court's conclusions are legally sound and squarely grounded in its prior precedent.
February 18, 2008 at 12:00 AM
1 minute read
The original version of this story was published on National Law Journal
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