Scheme Liability, Section 10(b), and Stoneridge

Next Tuesday, the Supreme Court of the United States will hear oral argument in Stoneridge Investment Partners v. Scientific Atlanta, the most important securities-law case in years.  The question presented–when, if ever, shareholders may sue third parties for their participation in allegedly fraudulent transactions with a public corporation–could have profound economic and legal implications.

The case has attracted over two dozen amicus briefs, filed by everyone from the National Association of Manufacturers to the Council of Institutional Investors.  Over 30 states and divided current and former SEC Commissioners have weighed in.  The case prompted considerable internal debate within the Bush Administration before the Justice Department finally filed a brief opposing liability in the case.

This Friday, the Center for Business Law and Regulation at the Case Western Reserve University School of Law and the Federalist Society’s Corporate Law Practice Group are co-sponsoring a half-day conference analyzing the case, entitled Scheme Liability, Section 10(b), and Stoneridge Investment Partners v. Scientific Atlanta.  Two morning panels will examine the legal and policy questions at issue in the case.  Speakers will include Professors Stephen Bainbridge (of the UCLA School of Law), Barbara Black (of the University of Cincinnati College of Law), Jay Brown (of the University of Denver Sturm School of Law), and Richard Painter (of the University of Minnesota Law School), as well as Andrea Seidt (an Assistant Attorney General of Ohio) and James Copland (of the Manhattan Institute for Policy Research).  A third panel will feature a debate between Eric Isaacson (of the Coughlin Stoia firm) and Ashley Parrish (of Kirkland & Ellis) on the merits of the case.The event is free and open to the public and will be webcast live.

Further details, including registration and information on how to view the webcast, are available here.