In a case of considerable importance to numerous securities class action lawsuits presently pending throughout the country, the United States Supreme Court today issued its opinion in Stoneridge Investment Partners, LLC v. Scientific-Atlanta, Inc., and affirmed the decision of the Eighth Circuit Court of Appeals. The underlying class action alleged securities fraud claims under, inter alia, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 based on misleading financial statements concerning Charter Communications. The class action complaint alleged that defendants Scientific-Atlanta and Motorola, who were customers and suppliers of Charter Communication, participated in a scheme to mislead Charter’s auditor, Arthur Andersen LLP, in order to support false financial statements. The Eighth Circuit had affirmed judgment in favor of the customers/suppliers, and the U.S. Supreme Court today affirmed on the ground that investors did not rely on any statements or representations made by the customers/suppliers. A summary of the opinion will be posted tomorrow morning.
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