Saturday, September 1, 2007

Anatole of France Lives

"What's going on in Stoneridge is an attempt to allow the tort equivalent of guilt-by-association. The case involves whether the liability for an accounting fraud at Charter Communications, ... can be extended to implicate some of Charter's deep-pocketed suppliers, including Motorola and Scientific Atlanta", WSJ, 23 August.

This is one of the most misleading editorials the WSJ has ever produced. The case is an attempt to apply the principles of Pinkerton v US and Halberstam v. Welch to securities fraud. It's a long established principle of criminal law tha a co-conspirator is liable for all of the acts of a conspiracy that further it, even if the co-conspirator is unaware of the act.

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