Saturday, July 18, 2009
Law Upside Down: A Critical Essay on Stoneridge Investment Partners, LLC v. Scientific-Atlanta, Inc., by Franklin A. Gevurtz, University of the Pacific (UOP) - McGeorge School of Law, was recently posted on SSRN. Here is the abstract:
This essay uses the Supreme Court’s recent decision in the highly controversial Stoneridge Investment Partners, LLC v. Scientific Atlanta, Inc. case to explore the question of who ought to pay when corporations issue false financial statements - an issue of critical importance with the seemingly endless stream of corporate fraud coming to light. The Supreme’s Courts’ answer is to focus on the corporation as the target for liability. The thrust of the essay is to show how this paints a bulls-eye on the wrong target, while allowing those who profited from knowing misrepresentation to escape liability.