Letter to the Editor pt 3. Letter to the Editor

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

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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
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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....
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This note was uploaded on 02/14/2008 for the course D SOC 111 taught by Professor Peine,emelie during the Spring '08 term at Cornell.

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