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U.S. Solicitor General Paul Clement refrained from filing an amicus brief by a midnight deadline even though he had been asked to do so by the Securities and Exchange Commission. The SEC had voted 3-2 to recommend that the solicitor general advocate on behalf of investors in a case about whether third parties can be sued under federal securities laws for allegedly playing a role in another company's accounting fraud, the paper reported.
A Justice Department spokesman would not say whether or when a brief would be filed, the paper reported.
The case involves a lawsuit against suppliers to Charter Communications Inc. over transactions in which the cable company allegedly inflated its revenue. The scheme involved paying Scientific Atlanta Inc., now a unit of Cisco Systems Inc., and Motorola Inc. extra money for cable boxes if the companies purchased advertising from the cable company, allegedly generating $17 million in improper revenue, the paper reported.
A U.S. trial judge dismissed the lawsuit against the suppliers in a ruling that said Supreme Court precedent limited such suits to primary violators of federal securities laws. An appeals court later affirmed the trial court's ruling, the paper reported.
Posted June 13th, 2007 by Alla
