The National Association of Manufacturers had filed an amicus brief in Stoneridge v. Scientific Atlanta. You can read it here.
From our news release issued the same day, Aug. 15, 2007:
“The petitioner in Stoneridge is trying to persuade the High Court to overturn decades of established law and greatly expand potential liability,” said Quentin Riegel, Vice President for Litigation and Deputy Legal Counsel for the National Association of Manufacturers. “The law makes clear, and the Supreme Court has affirmed, that one cannot be held liable under Section 10(b) for engaging in deceptive conduct without having breached a duty to investors.
“The key issue in this case is primary liability,” Riegel said. “Without question, a company must give accurate information about its own stock. But the actions of third parties are not covered by this provision of the law. Plaintiffs’ attorneys are not empowered to sally forth beyond the law in an indiscriminate search for deep pockets.”
Riegel said that “Congress made clear its intent to keep Section 10(b) confined to market actors and market-directed activities, not to expand it to manufacturers or others who simply do business with a market actor. If the petitioner prevails in this case, it will open the floodgates for litigation and have a chilling effect throughout our economy. It also will amount to a reversal of Central Bank, in which the High Court held that only the SEC could bring an action for aiding and abetting a primary securities violation.”
More background information here.
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