Constitutional Law

Supreme Impact

Shareholders suing DVI Inc., a health care finance company that went bankrupt, will not be able to recover against London law firm Clifford Chance for allegedly conspiring with DVI’s executives to conceal the company’s financial health through use of sham transactions, a Philadelphia federal judge ruled, according to the New York Law Journal.

The ruling cited Stoneridge v. Scientific-Atlanta, a January 2008 Supreme Court decision that held that investors may not recover against third parties whose business partners fraudulently misled them, unless the investors relied upon public statements made by the third party.

Full post as published by ACS Blog on May 02, 2008 (boomark / email).