James C. Dugan, a partner at Willkie Farr & Gallagher, writes that decisions issued since Stoneridge suggest that lower courts are inclined to read the Supreme Court's holding broadly and dismiss claims against any third parties, regardless of their affiliation with an issuer, who are not alleged to have participated in preparing or disseminating false financial statements or other public statements. One interesting question left open is the degree to which a third party's active participation in drafting or preparing false statements that are then communicated to investors gives rise to a duty to disclose and whether the existence of such a duty trumps the fact that the false statements were not publicly attributable to the third party.
Font Size: 
Outside Counsel
Whither 'Stoneridge v. Scientific-Atlanta'? Early Results
New York Law Journal
July 8, 2008
This content is now available at LexisNexis®.
The ALM® and LexisNexis® Content Alliance
LexisNexis® is now the exclusive third party online distributor of the broad collection of current and archived versions of ALM’s legal news publications. LexisNexis® customers will be able to access and use ALM’s content by subscribing to the LexisNexis® services via lexis.com® and Nexis®. This includes content from The National Law Journal®, The American Lawyer®, Law Technology News®, The New York Law Journal® and Corporate Counsel®, as well as ALM’s other newspapers, directories, legal treatises, published and unpublished court opinions, and other sources of legal information.
ALM’s content plays a significant role in your work and research, and now through this alliance LexisNexis® will bring you access to an even more comprehensive collection of legal content.
If you are not currently a LexisNexis subscriber, contact 1-800-227-4908 to find out more or click here to have a customer representative contact you directly.
