The first impact of the Stoneridge decision has been felt. The U.S. Supreme Court issued an order today denying review of California Regents v. Merrill Lynch, the Enron-related case from the Fifth Circuit that raised similar scheme liability issues.
The Court also vacated and remanded a Ninth Circuit case on scheme liability, Avis Budget Group, Inc. v. Ca. State Teachers’ Retirement, for further consideration in light of Stoneridge (see here for a summary of the Ninth Circuit opinion). Bloomberg and SCOTUSBlog have reports on the decisions.
Quote of note (Bloomberg): “The court’s rejection of the Enron investor appeal came without any published dissent. The rebuff ‘further confirms that there is no financial services exception’ to the Stoneridge ruling, said [counsel for] the suppliers in last week’s case.”