Editor’s Note: This post is from Theodore Mirvis of Wachtell, Lipton, Rosen & Katz.

On Tuesday, the U.S. Supreme Court handed down its long awaited decision in Stoneridge Investment Partners, LLC v. Scientific-Atlanta, Inc., 552 U.S. __ (2008). The decision affirms the Supreme Court’s tendency to limit implied rights of action under the securities laws. Specifically, the Supreme Court rejected the concept of “scheme liability” and refused to grant a private right of action against third parties for entering into transactions with the issuer even if they knew that the issuer’s accounting treatment of these transactions would be fraudulent. Some of my partners have prepared a short summary of the decision, which is available here.

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