Financial Times FT.com

Supreme Court blow to investor lawsuits

By Patti Waldmeir in Washington

Published: January 15 2008 20:20 | Last updated: January 15 2008 20:29

Bankers, accountants and lawyers won powerful protection against US investor lawsuits on Tuesday when a Supreme Court ruling made it difficult for shareholders to sue third parties for frauds committed by companies.

The court’s 5-3 decision, in the most important securities case in more than a decade, will make it even more difficult for investors to recoup billions of dollars they lost in frauds at Enron and HealthSouth.

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