by Bruce Cain
THE HAYES LAW FIRM, P.C., 1235 North Loop West, Suite 510, Houston, Texas 77008. www.dhayeslaw.com, Tel:713-862-2152, or 1-866-332-3567, toll free
Earlier this week, the United States Supreme Court began hearing oral arguments which could severely impact the rights of investors.
The Supreme Court granted a Writ of Certiorari on March 26, 2007 in the case of Stoneridge Investment Partners LLC v. Scientific-Atlantic and Motorola. This case impacts thousands of investors and their rights to recoup losses sustained due to investment bankers, accountants and others who knowingly engaged in schemes to artificially inflate stock prices.
Not surprisingly, brokerage firms are lining up to say that investors do not have the right to pursue litigation to recover losses. Industry backed "associations" The Securities Industry and Financial Markets Association ("SIMFA") and Futures Industry Association are among those who have filed briefs with the Court insisting that investors do not have the right to sue to recover investment losses. In its brief SIMFA states that they bring "together the shared interest of more than 650 securities firms, banks, and asset managers that have a vital interest in the outcome of this appeal."
"That is the understatement of the year," said Debra Hayes of The Hayes Law Firm. "Brokerage firms like Merrill Lynch are counting on this Court to do what it has done in previous rulings. The climate over the last few years has seen a tremendous decline in investors' rights. This Court has been chipping away consumers remedies. This Court has continuously sided with big business and has ignored the rights of consumers."
Attorneys like Ms. Hayes continue to press the Courts on this issue to protect consumers. The Securities Act of 1934 is the benchmark by which investors have been able to pursue their legal remedies. SEC Rule (10)(b)(5) prohibits anyone to employ a "deceptive device or contrivance" to enable securities fraud.
Despite the urging of United States Senate Committee on Banking, Housing and Urban Affairs Chairman, Christopher Dodd and the House of Representatives Judiciary Committee Chairman, John Conyers, Financial Services Committee Chairman, Barney Frank, as well as several former commissioners of the Securities and Exchange Commission, Paul D. Clement, Solicitor General for the Unites States Department of Justice filed an Amicus Brief on behalf of big business.
"Obviously, we are concerned for the investor who has lost substantial amounts of money due to the bad acts of not only the brokerage firms, but also those who colluded with them," said Debra Hayes. "We as American citizens look to the highest court in the land to interpret the rights of private citizens. The unfortunate reality is that the current Court is more concerned with the interest of big business rather than the Little guy."
The Hayes Law Firm focuses its practice entirely on representing investors who lost money in the stock market. For more information, please visit our Web site at www.dhayeslaw.com to obtain a full copy of the SEC Report. Our blog provides educational articles dealing with investor issues at www.aboutbrokerfraud.com