Cross posted from The Pop Tort by Joe Consumer
The U.S. Senate Judiciary Committee is holding a hearing this week about how the current U.S. Supreme Court is one of the most activist ever (yes, that’s right, I said activist) when it comes to shielding corporations from wrongdoing.
The hearing, “Courting Big Business: The Supreme Court’s Recent Decisions on Corporate Misconduct and Laws Regulating Corporations,” will be held Wednesday, July 23, at 10:00 a.m. in room 226 of the Dirksen Senate Office Building. The hearing will be webcast live online.
Senate Judiciary Chair Patrick Leahy (D-VT) noted, “In June, the Judiciary panel examined recent Supreme Court decisions that have preempted several state laws established to protect Americans, including laws to shield Americans from illegal hiring practices, medical liability, and predatory lending practices.”
Among those testifying: an Exxon Valdez victim, a Harvard University Law professor, and a corporate lawyer. Interestingly, all women!
Center for Justice & Democracy’s Joanne Doroshow wrote this commentary last March along the same lines for California's The Recorder, about the Stoneridge securities case, called the "A Return to Gordon Gekko Justice." Here’s an excerpt:
Specifically, in Stoneridge Investment Partners v. Scientific-Atlanta,
128 S.Ct. 761, the court ruled that shareholders could no longer hold
these so-called secondary actors responsible when they participate in a
scheme with a public company to inflate its stock price and, thereby,
defraud shareholders.
In making this ruling, a majority of the court's justices acted as if
they had never heard of Enron, WorldCom or the countless other cases of
corporate fraud from the last several years — many of which were made
possible by these very same secondary actors.
The Stoneridge ruling means that many victims of securities fraud can
no longer recover even a fraction of the losses they suffer at the
hands of deep-pocketed business interests who are directly involved in
elaborate schemes to mislead the investing public.
Breaking with Securities and Exchange Commission precedent, the views
of 33 state attorneys general and members of Congress from both parties
— including ranking Senate Judiciary Committee Sen. Arlen Specter,
R-Pa. — this ruling was one of the most activist Supreme Court
decisions in recent years. It should come as no surprise that a
representative of the national Chamber of Commerce giddily
characterized the first year of Roberts' Supreme Court as, "our best
Supreme Court term ever."
However, for those concerned about the integrity of our markets and the
rights of investors, it may very well be the worst court ever.