A Renewed Push to Hook Companies for Counterparties' Actions

August 11, 2009

Ira A. Schochet commented concerning the proposed legislation which would expand which companies can be considered primarily responsible for securities fraud

"In recent years, the Supreme Court "has taken an excessively narrow and constricted view of liability for secondary actors," according to Ira Schochet, a partner at Labaton Sucharow and president of the National Association of Shareholder and Consumer Attorneys. His nonprofit organization supports the SEC's recent amicus brief and Specter's bill. The most recent Supreme Court decision on the issue, StoneRidge v. Scientific Atlanta, allows corporations' gatekeepers to "effectively be immune from legitimate claims by injured investors," the group asserts.