Stoneridge Investment Partners, LLC v. Scientific-Atlanta, Inc.
United States Supreme Court
552 U.S. 148 (2008)
Relevant factsFree
Scientific-Atlanta and Motorola (defendants) engaged in round-trip transactions with Charter Communications -- Charter overpaid them for equipment, and they used the extra funds to buy advertising back from Charter -- which Charter then used to inflate its reported revenue in its own securities filings. When the scheme was discovered, Charter's investors (Stoneridge, plaintiffs) sued Scientific-Atlanta and Motorola under Sec. 10(b) of the Exchange Act; the lower courts ruled against Stoneridge, and it sought certiorari.
IssueFree
Whether an investor may prove reliance pursuant to Sec. 10(b) of the Exchange Act using evidence of a public misstatement caused by the business operations of a third party.