Wednesday, January 16, 2008

Top court ruling goes against investors

The US Supreme Court put new limits on shareholder suits against a company's banks and business partners in a ruling that may thwart efforts to recoup billions of dollars lost in frauds at Enron Corp. and HealthSouth Corp.
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The justices, voting 5 to 3, threw out a lawsuit by Charter Communications Inc. investors against two of its suppliers, Motorola Inc. and Scientific-Atlanta Inc. The court said the shareholders didn't show they relied on the alleged deception by the suppliers in making investment decisions.

The ruling is a triumph for business groups in what they called their highest priority in the court's 2007-08 term. Trade groups representing banks, accounting firms, and law firms took an especially keen interest, saying their members might present tempting targets for shareholder lawyers.

Top court ruling goes against investors

Labels: fraud shareholder lawsuit, supreme court decision

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