Stoneridge Investment Partners v. Scientific-Atlanta

E590647

Stoneridge Investment Partners v. Scientific-Atlanta is a 2008 U.S. Supreme Court case that limited the scope of private securities fraud lawsuits by holding that secondary actors in a deceptive scheme are not liable under Section 10(b) unless their own conduct is directly relied upon by investors.

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Predicate Object
instanceOf United States Supreme Court case
securities law case
citation 552 U.S. 148
concurrence Clarence Thomas
country United States
court Supreme Court of the United States
decisionDate 2008-01-15
decisionType precedential opinion
defendantType corporate vendors
dissentingJustices David H. Souter
John Paul Stevens
Ruth Bader Ginsburg
docketNumber 06-43
effect limited liability of vendors and business partners in private Rule 10b-5 actions
narrowed the scope of private securities fraud lawsuits against secondary actors
holding Scheme liability under Section 10(b) does not extend to vendors whose deceptive acts were not disclosed to the investing public
Secondary actors in a deceptive scheme are not liable in private actions under Section 10(b) unless investors relied on the secondary actors’ own deceptive conduct
issue Whether secondary actors can be held liable in private securities fraud suits for participating in a deceptive scheme without making public statements relied on by investors
jurisdiction federal question jurisdiction
keyRequirement investors must show reliance on the defendant’s own deceptive conduct or statements
languageOfRecord English
legalArea federal securities law
securities fraud
lowerCourt United States Court of Appeals for the Eighth Circuit
lowerCourtDisposition affirmed
majorityJustices Anthony M. Kennedy
Antonin Scalia
Clarence Thomas
John G. Roberts, Jr.
linked to: John G. Roberts Jr.

Samuel A. Alito, Jr.
linked to: Samuel A. Alito Jr.
majorityOpinionBy Anthony M. Kennedy
petitioner Stoneridge Investment Partners, LLC
plaintiffType institutional investor
proceduralPosture appeal from the Eighth Circuit in a securities fraud class action
relatedCase Basic Inc. v. Levinson
Central Bank of Denver v. First Interstate Bank of Denver
Tellabs, Inc. v. Makor Issues & Rights, Ltd.
relatedConcept private right of action under Section 10(b)
reliance in securities fraud
scheme liability
secondary actor liability
respondent Motorola, Inc.
linked to: Motorola

Scientific-Atlanta, Inc.
statuteInterpreted SEC Rule 10b-5
linked to: Rule 10b-5

Section 10(b) of the Securities Exchange Act of 1934
term October Term 2007

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Section 10(b) of the Securities Exchange Act of 1934 relatedCaseLaw Stoneridge Investment Partners v. Scientific-Atlanta