Supreme Court Limits Fraud Claims Against 3rd Parties

From the wonderful crew at the SCOTUS Blog:

“The Supreme Court, in one of the most important securities law rulings in years, decided Tuesday that fraud claims are not allowed against third parties that did not directly mislead investors but were business partners with those who did. The 5-3 ruling came in Stoneridge Investment Partners v. Scientific-Atlanta (06-43).”

SCOTUS Blog: Court Limits Securities Fraud
Stoneridge Investment Partners, LLC v. Scientific-Atlanta, Inc.

This case is good news for 3rd party service providers to hedge funds. If the investor does not rely on a statement directly from 3rd parties, the 3rd party cannot be held liable for fraud.

—–

Advertisements

About Amir

I hate doctors!
This entry was posted in News, Overhedged and tagged . Bookmark the permalink.