Financial Times FT.com

US court to rule on third-party liability

By Patti Waldmeir in Washington

Published: September 30 2007 22:11 | Last updated: September 30 2007 22:11

The post-Enron battle against corporate fraud could be about to reach an important turning point, as the US Supreme Court considers whether to extend ­liability for corporate fraud to virtually any company that does business with a US corporation that defrauds its investors.

The top court, which begins a new term on Monday, could have the fate of US competitiveness in its hands as it hears its most important investor lawsuit in at least a decade.

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