Letter to the Editor pt 3. Letter to the Editor

Letter to the Editor pt 3. Letter to the Editor -...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Chen 1 Kristin Chen Letter to the Editor To the Editor, Regarding Kara Scanell’s article on the Stoneridge v. Scientific-Atlanta case (10/9/2007): The Stoneridge Investment Group seems to have a noble purpose: expanding shareholders rights to sue third parties involved in accounting fraud. However, behind the façade of this seemingly righteous endeavor lies another motive. The SEC’s support for the plaintiffs does not come as a surprise. Even though they have the ability to sue third parties to recover investors’ losses, perhaps it seems simpler to eliminate their “middle man” work and transfer the responsibility onto individual shareholders. The SEC should take initiative to exercise its own responsibility of punishing third parties involved in illegal activities and fairly distribute fines collected in the process to parties injured by fraud. Can the court system handle the overflow of litigation from
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: money-hungry lawyers and investors to exploit third parties for financial gain? Though Scientific-Atlanta and Motorola Inc. did facilitate Charter’s accounting fraud—albeit indirectly —it does not seem necessary to grant shareholders the ability to sue third parties accused of aiding a U.S. corporation that defrauds its investors. Yes, Scientific-Atlanta and Motorola do deserve to be financially reprimanded for their duplicity, especially since the Securities Exchange Commission has already reached a settlement with Scientific-Atlanta and Motorola of $20 million and $25 million for similar questionable transactions they made with another cable company. However, the SEC already has the power hold third parties accountable—the Supreme Court should pressure the SEC to do its job or tell the court system to prepare itself for the approaching deluge of securities-litigation....
View Full Document

  • Spring '08
  • PEINE,EMELIE
  • U.S. Securities and Exchange Commission, Scientific-Atlanta, Kristin Chen Letter, Stoneridge Investment Group, Regarding Kara Scanell, seemingly righteous endeavor

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern