Senators Reject House Plan to Reverse Stoneridge, Widen Scope of Fraud Lawsuits

Senators on Wednesday beat back a House measure giving shareholders the power to sue third parties such as banks and accountants not directly involved in securities fraud. The House proposal would have reversed the Supreme Court’s 2008 decision in the Stoneridge case that protects third parties not directly involved in securities fraud.

Reuters: Senators nix plan to widen scope of fraud suits