Supreme Court Rules Against Investors in Securities Fraud Case

By: Associated Press
By: Associated Press

SUPREME COURT -- A setback Tuesday for investors seeking to sue businesses for scheming to manipulate stock prices of publicly traded companies.

In a 5-3 ruling, the Supreme Court gave a measure of protection from securities suits to suppliers, banks, accountants and law firms that do business with corporations engaging in securities fraud.

The court ruled against investors who claimed that two suppliers schemed with Charter Communications to deceive stockholders and inflate the price of the cable TV company's stock.

The majority opinion by Justice Anthony Kennedy held that Charter investors do not have the right to sue because they did not rely on the deceptive acts of Charter's suppliers.

The decision is likely to have an impact on a similar class-action lawsuit by shareholders who invested in scandal-ridden Enron.

Join the Conversation!

To comment, the following rules must be followed:

  • No Obscenity, Profanity, Vulgarity, Racism or Violent Descriptions
  • No Negative Community Comparisons
  • No Fighting, Name-calling, Trolling or Personal Attacks
  • Multiple Accounts are Not Allowed
  • Stay on Story Topic

Comments may be monitored for inappropriate content, but the station is under no legal obligation to do so.
If you believe a comment violates the above rules, please use the Flagging Tool to alert a Moderator.
Flagging does not guarantee removal.

Multiple violations may result in account suspension.
Decisions to suspend or unsuspend accounts are made by Station Moderators.
Questions may be sent to Please provide detailed information.

powered by Disqus
KBTX-TV Channel 3 4141 E. 29th Street Bryan, TX 77802 Phone: (979) 846-7777 Fax: (979) 846-1490 News Fax: (979) 846-1888
Copyright © 2002-2015 - Designed by Gray Digital Media - Powered by Clickability 13799372 -
Gray Television, Inc.