The 'Stoneridge' Case
Keeping markets honest
Arthur R. Miller / Special to The National Law Journal
September 24, 2007
Over this summer, a high drama played out within the Bush administration involving the U.S. Securities and Exchange Commission (SEC), the U.S. Department of Justice, Congress, Wall Street banks and victims of securities fraud — with a spotlight on the Enron meltdown. The underlying battle, now before the U.S. Supreme Court, concerns whether investment banks and other third parties that work hand in glove with the WorldComs of the world — creating sham loans and cooking books — can be brought to justice by their victims. The result, in a case called Stoneridge, will have enormous consequences for investors' ability to recover monies against those who purposefully enable others to lie to the markets — the silent partners in corporate fraud, insider trading and stock manipulation.
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