Colorful Comparisons Show Fraud Case’s Implications
Law professors are drawing on colorful comparisons to stress the importance of a lawsuit that seeks to hold third parties accountable for corporate wrongdoing.
In Stoneridge Investment Partners v. Scientific-Atlanta Inc., No. 06-43, the U.S. Supreme Court will decide whether to permit lawsuits against lawyers and other professionals who participate in a fraudulent scheme with a company.
The suit could make a difference in shareholder litigation against the banks that helped Enron hide financial problems. Georgetown University law professor Donald C. Langevoort told the Washington Post that the possible impact makes the suit extremely important.
“It’s 11 on a scale of one to 10,” he said. “Enron is the 800-pound gorilla shadowing this case.”
Another unnamed law professor told the newspaper that the passion and fundraising opportunities created by the suit make it the business community’s equivalent of Roe v. Wade.
