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Friday, April 19, 2024 | Back issues
Courthouse News Service Courthouse News Service

Supreme Court Restricts Securities Fraud Lawsuits

WASHINGTON (CN) - The Supreme Court today made it more difficult for investors to successfully sue businesses for manipulating stock prices of publicly traded corporations. By 5-3 vote, justices rejected claims that two suppliers colluded with Charter Communications to inflate the price of the cable TV company's stock.

Justice Kennedy wrote for the majority that Charter investors had no right to sue because "no member of the investing public" knew of the suppliers' allegedly deceptive acts. Justice Stevens, in dissent, decried the court's continuing campaign to disable investor lawsuits. See ruling.

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