In Stoneridge Investment Partners,LLC V

In Stoneridge Investment Partners,LLC v.Scientific-Atlanta,Inc.,the U.S Supreme Court analyzed the question of whether customer-supplier companies that agreed to arrangements allowing an issuer to mislead its auditor are liable in a private action under section 10(b) of the 1934 Act.The Court ruled that:

A) based on "scheme liability," the customer-supplier companies could be held liable although no public statement was made.
B) based on "transaction causation" the plaintiffs could establish reliance and that the plaintiffs were,therefore,entitled to proceed.
C) plaintiff investors had no private right of action because they did not rely upon the statements or representations at issue.
D) the plaintiff investors had no private right of action because the defendants were not aiders and abettors and,instead,acted primarily on their own behalf outside the realm of securities regulation.