The Supreme Court Rejects "Scheme Liability" in Securities Class Actions

By Larry J. Obhof
April 04, 2008
On January 15, 2008, the Supreme Court issued its decision in Stoneridge Investment Partners LLC v. Scientific-Atlanta, Inc., a case heralded by commentators as the “most important securities case in decades.” The five-to-three Stoneridge majority rejected a theory of “scheme liability” that would have greatly expanded the universe of potential class action defendants....