Media Mentions
Oct 28, 2008
Chris Robertson and Erik Weibust Published in Securities Docket: The Global Securities Litigation and Enforcement Report
"Will Stoneridge Protect ‘Secondary Actors’ in the Current Financial Crisis?”
Chris Robertson and Erik Weibust’s article, “Will Stoneridge Protect ‘Secondary Actors’ in the Current Financial Crisis?” was recently published as a guest column in Securities Docket: The Global Securities Litigation and Enforcement Report. The article addresses the question of what exposure “secondary actors,” such as law firms, auditors, and/or investment banks, face in a securities transaction following the United State’s Supreme Court’s recent Stoneridge decision.
Chris and Erik conclude that with the recent collapse of the financial markets and increased number of corporate bankruptcies, the plaintiffs’ bar and bankruptcy trustees will be looking for targets, and although secondary actors may be shielded from traditional securities class action claims, they are not as protected from claims brought under state securities laws, derivative actions, and single plaintiff claims brought by large institutional investors. According to Chris and Erik, “Stoneridge is clearly an important decision, and provides significant protection to secondary actors in securities transactions, such as investment bankers, lawyers and auditors. These entities, however, should be aware that Stoneridge is not all-encompassing, and does leave a number of alternative avenues for plaintiffs to seek recovery.”