The U.S. Supreme Court on Tuesday handed down a landmark ruling that limits the scope of federal securities laws.
The Court ruled investors cannot sue a company’s investment advisors, banks, accountants or attorneys, or suppliers or vendors, on grounds they colluded with the company’s management fraudulently to inflate its share price.
The ruling is a victory for conservative business interests and a major defeat for plaintiffs’ class action securities fraud lawyers, who are among the biggest money contributors to the Democrat Party.
The 5-3 ruling was authored by Reagan-nominated Justice Anthony M. Kennedy, and joined by Chief Justice Roberts (Bush 43) along with Justices Scalia (Reagan), Thomas (Bush 41), and Alito (Bush 43).
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Here’s a link to a report from the Associated Press, which for obvious reasons was couched in different terms.
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Here’s a link to the actual text of the SCOTUS’ decision.