An expose of bad businesses and their unethical practices

The U.S. Supreme court has returned a ruling, in a case known as Stoneridge Investment Partners v. Scientific Atlanta and Mororola, which means that the parties liable for corporate securities fraud are generally limited to the offending corporation itself and its officers. The suit had sought to widen the liability in fraud cases to include lawyers, accountants, vendors, and others who do business with the offending corporation.

This ruling represents a disappointment for watchdog organization who had hoped to make business associates involved in the fraud bear part of the liability for losses, such as accountants that audit the books of companies and do not notice or report fraudulent activity. It's also a setback for corporate watchdogs who were hoping the justices would adopt a broad enough reading of the securities laws to put all business associates on notice that they could be held accountable for involvement in business fraud.

The decision is generally held to be one of the most important securities law ruling in a generation. The decision marks a victory for various business groups that had argued that broad liability in securities-fraud cases could unleash a flood of class-action litigation that would hurt the US economy and American competitiveness. Unfortunately, it also makes these business groups less likely to be held accountable for Bad Business.