---
title: U.S. Supreme Court Hands Down Stoneridge DecisionReliance Returns to 10b-5 Cases
date: 2008-01-17T00:00:00-05:00
author: Import Bot
canonical_url: "https://www.kelleydrye.com/viewpoints/client-advisories/u-s-supreme-court-hands-down-stoneridge-decisionreliance-returns-to-10b-5-cases"
section: Client Advisories
---
# U.S. Supreme Court Hands Down Stoneridge DecisionReliance Returns to 10b-5 Cases

 January 17, 2008

Kelley Drye Client Advisory

 

 

 

 

 

 

Kelley Drye’s [Litigation ](/Our-Practices/Litigation-and-Investigations/Litigation)Practice Group has prepared a client advisory regarding the *Stoneridge Investment Partners v. Scientific Atlanta* decision, in which the U.S. Supreme Court handed down its long-awaited decision determining the scope of liability under the securities law for third parties. The Court rejected ​“scheme liability” and held that third parties who contract with companies that commit securities fraud are not liable to shareholders of those companies as primary violators of Rule 10b-5 absent a showing that the plaintiff investors relied on the third-party’s conduct or statements. As the advisory explains, the case should provide comfort to companies which have been fearful of being drawn into prolonged class-action litigation as a result of their business dealings with public companies who are later accused of securities fraud.

 

 

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