Justices Challenge Arguments in Favor of Shareholders Suing Companies

[Omaha Steve]

Source: AP

Justices Challenge Arguments in Favor of Shareholders Suing Companies
03-28-2007 6:05 PM
By MARCY GORDON, AP Business Writer

WASHINGTON (Associated Press) -- Several Supreme Court justices challenged shareholder groups who were arguing Wednesday against standards that could make it tougher for investors' cases to go forward when they sue companies for fraud.

Appeals courts have been split on whether a stricter standard should be applied for initially making a case in such lawsuits. The Bush administration favors the tougher standard, but the investor groups say it would go too far in choking off suits.

Several justices suggested not only going along with the stricter standard for starting cases but raising the bar for proving cases later on to the same higher level.

The high court is being asked to clarify what legal hurdles investors must clear in a case with far-reaching repercussions for class-action lawsuits against public companies. Such suits have brought billions of dollars to shareholders in connection with the 2002 wave of corporate scandals.

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[aquart]

1. The Supreme Court wants to license more Enrons?

Of course they do, treasonous bastards.