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“Stoneridge And Scheme Liability Under Rule 10b-5: The Case For Private Enforcement.”, Erica L. Finkelson
“Stoneridge And Scheme Liability Under Rule 10b-5: The Case For Private Enforcement.”, Erica L. Finkelson
Erica L Finkelson
This note examines the issue of scheme liability in securities fraud, which was heard on October 9, 2007 before the Supreme Court in Stoneridge Investment Partners, LLS, (Stoneridge) v. Scientific-Atlanta, Inc. and Motorola, Inc. Stoneridge represents shareholders who purchased stock in the cable company Charter Communications, Inc. (Charter). Stoneridge sued Scientific-Atlanta and Motorola for fraud because these companies knowingly agreed to let Charter overpay them for cable boxes and returned those funds to Charter as advertising payments so that Charter could inflate its revenue, misleading investors as to Charter’s book value. This note argues that Scientific-Atlanta and Motorola’s purposeful and …