US courts are considering on Monday whether to bless a new legal theory thought up by plaintiffs’ lawyers that could put banks, lawyers and business partners on the hook for billions of dollars when a public company goes bust because of fraud.
The fifth circuit federal appeals court in New Orleans will take up the issue of “scheme liability” when it hears arguments on whether Enron’s shareholders can pursue a class action against Credit Suisse, Merrill Lynch and lawyer Vinson & Elkins.
