Sunday, January 20, 2008
In Stoneridge Investment Partners v. Scientific-Atlanta Inc. and Motorola Inc., the U.S. Supremes stuck it to the middle class again.
A conservative Republican Supreme Court ruled that people who buy shares in companies that defraud them can't sue those who helped cook the books. The Supreme's "hey, suck it up" approach was not totally unexpected in view of the Supreme Court's unabashed protection of business fraud.
But hey, you who philosophize disgrace take the rag away from your face, cause now ain't the time for your tears. Here's the real outrage.
Supreme Court Chief Justice John Roberts, the pinnacle of honesty, pulled a "Jutice Scalia" move. At first, Roberts recused himself in the case, because he owned stock in Cisco, the parent company of defendant Scientific-Atlanta. But then, Roberts rejoined case and ruled in favor of the corporate thieves, after selling his stock in Cisco.
To add salt to the investor's wound, Solicitor General Paul Clement at first sided with the Securities and Exchange Commission, who sided with investors, but changed his position and sided with the corporate thieves in response to pressure from the Bush administration. (Here's the Clement's brief favoring the corporate thieves).