United States Supreme Court

In a class action brought by investors alleging losses after purchasing common stock, the investors sought to impose liability on entities who, acting both as customers and suppliers, agreed to arrangements that allowed the investors' company to mislead its auditor and issue a misleading financial statement affecting the stock price. Dismissal of the action is affirmed as the Court rules that the Securities Exchange Act of 1934 section 10(b) private right of action does not reach the customer/supplier companies because the investors did not rely upon their statements or representations.

Appellate Information

• Decided 01/15/2008
• Published 01/15/2008

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Court

• United States Supreme Court

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