Stoneridge: Which Investors?

By August 28, 2007Briefly Legal

As we noted in previous posts (here and here), the simple media storyline about Stoneridge v. Scientific-Atlanta is that pits investors against big business, implying the powerful corporations are sticking it to the little guy. Really? Suppliers and manufacturers who could be sued for only a tangential connection to securities fraud if the Supreme Court holds for Stoneridge. Don’t they have investors too?

Ted Frank at the American Enterprise Institute sees it the same way, as recounted in his letter to the editor in Legal Times:

No, It’s a “Pro-Investor” Ruling

Legal Times
Publication Date: August 27, 2007

I appreciated the chance to speak with reporter Tony Mauro about Stoneridge v. Scientific-Atlanta, an upcoming Supreme Court case that will be discussed at an AEI panel on Oct. 5. Unfortunately, a sentence in his Aug. 20 article [“High Court Head Count at Issue,” Page 1] incorrectly implied that I thought the decision by the U.S. Court of Appeals for the 8th Circuit in the case was an “anti-investor ruling,” when that characterization is solely Mauro’s.

On the contrary, as I have written in The Wall Street Journal and told Mauro, I believe that the 8th Circuit’s dismissal of the case redounds to the benefit of investors in general and that the best result for investors (if not for trial lawyers) would be affirmance by the Supreme Court. And I say that even though I am a putative class member in Stoneridge.

Ted Frank is a resident fellow and director of the Liability Project at AEI.

In other AEI legal news, the National Law Journal reports:

The American Enterprise Institute for Public Policy Research in Washington, will absorb the National Legal Center for the Public Interest next month, creating the new AEI Legal Center for the Public Interest.

The merger of the two conservative-leaning organizations will be effective Sept. 4 and is happening after leaders from the National Legal Center moved to new posts. Richard Hauser, the most recent president of the center, in June became the senior attorney for Boeing Co. in Washington.

Fred Fielding, another top leader, became White House counsel in January.

Good luck!

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