Former SEC Commissioners Support Plaintiffs in Scheme Liability Case

Three former SEC Commissioners have filed a brief with the Supreme Court, asking permission to file a brief on behalf of plaintiffs in the Charter Communications case involving "scheme liability" under rule 10b-5.  Last month the U.S. Solicitor General did not file a brief on behalf of the plaintiff-investors, as the SEC requested.  Treasury Secretary Paulson opposed the SEC's position, and President Bush agreed with the Treasury Secretary.  It remains to be seen whether the Solicitor General will file a brief in support of the defendant's position.  The former SEC Commissioners are represented by NYU Professor Arthur Miller.  See WPost, Former SEC Officials Enter Securities Case.