U.S. Supreme Court
Roberts ‘Unrecuses’ in Stoneridge Case
Posted Sep 21, 2007, 07:11 am CST
By Debra Cassens Weiss
Chief Justice John G. Roberts Jr. has apparently sold his stock in Cisco Systems Inc., the parent company of a litigant in a case that could increase liability for law firms.
Roberts and Justice Stephen G. Breyer had earlier indicated they would recuse themselves in the case, Stoneridge Investment Partners v. Scientific-Atlanta and Motorola. But Roberts now says he will participate, Legal Times reports.
A new law, backed by Roberts, made his switch possible, ABAJournal.com noted in a prior post. It permits judges to defer capital gains if they sell stock to remove a conflict of interest.
At issue is whether investors can sue third parties who participate in a fraudulent scheme with a company. A prior Supreme Court case held that only “primary violators” can be liable in investor suits; lower courts have come