http://blogs.law.harvard.edu/corpgov/2007/05/30/the-sec-the-supreme-court-and-enron/ Sponsored by the HLS Corporate Governance Program Sat, 30 Aug 2008 01:22:16 +0000 http://wordpress.org/?v=2.5.1 http://blogs.law.harvard.edu/corpgov/2007/05/30/the-sec-the-supreme-court-and-enron/#comment-5184 Joseph Feldman Tue, 09 Oct 2007 09:12:10 +0000 http://blogs.law.harvard.edu/corpgov/2007/05/30/the-sec-the-supreme-court-and-enron/#comment-5184 The Stoneridge case is critical. Investment banks, banks, lawyers, and accountants must be permitted to collude with issuers of financial statements to perpetrate frauds without interference by annoying law firms from the plaintiffs' bar. Such third parties depend upon the revenues they earn from participating in creating, developing, and marketing such fraud schemes to issuers and it would be a violation of the rights to impinge on the furtherance of their important services. Indeed, an economic collapse could well result of such proportions and magnitude if any cap is placed on such activities that even the puny SEC fines that are sometimes imposed could alse adversely affect operations leading to a complete implosion of the free market. I am certain that the US Supreme Court understands the importance of this case and will decide to ignore the law as it is written and to interpret it to fit a scope which not only eliminates third party scheme liability, but also encourages third parties to engage in such frauds even if they had not considered doing so in the past. Thank you. The Stoneridge case is critical. Investment banks, banks, lawyers, and accountants must be permitted to collude with issuers of financial statements to perpetrate frauds without interference by annoying law firms from the plaintiffs’ bar. Such third parties depend upon the revenues they earn from participating in creating, developing, and marketing such fraud schemes to issuers and it would be a violation of the rights to impinge on the furtherance of their important services. Indeed, an economic collapse could well result of such proportions and magnitude if any cap is placed on such activities that even the puny SEC fines that are sometimes imposed could alse adversely affect operations leading to a complete implosion of the free market. I am certain that the US Supreme Court understands the importance of this case and will decide to ignore the law as it is written and to interpret it to fit a scope which not only eliminates third party scheme liability, but also encourages third parties to engage in such frauds even if they had not considered doing so in the past. Thank you.

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