| "With Justice Clarence Thomas writing for a 5-to-4 majority, the Supreme Court has made it much harder for private lawsuits to succeed against mutual fund malefactors, even when they have admitted to lying and cheating.
The court ruled that the only entity that can be held liable in a private lawsuit for "any untrue statement of a material fact" is the one whose name the statement is presented under. That's so even if the entity presenting the statement is a business trust -- basically a dummy corporation -- with no assets, while its owner has the cash. The facts of Janus Capital Group v. First Derivative Traders are outrageous." |
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At www.nytimes.com
At www.nytimes.com
