The U.S. Supreme Court today agreed to review the underpinnings of the Fifth Circuit’s 2-1 decision last week to decertify a class of Enron shareholders. In Stoneridge Investment Partners, LLS v. Scientific-Atlanta, Inc., No. 06-43 (U.S. Mar. 26, 2007) (order granting cert. here), the Court will consider whether the Eighth Circuit erred in limiting liability under section 10 of the Securities Exchange Act and Rule 10b-5 to defendants who directly misrepresented facts, omitted facts they had a duty to disclose, or engaged in manipulative buying or selling. The Fifth Circuit adopted the Eighth Circuit’s analysis and rejected the Ninth Circuit’s contrary approach.
Blawgletter notes, with a teeny dot of satisfaction, that we highlighted the possibility of Supreme Court review last Wednesday.