More than three dozen organizations and individuals issued a public statement highlighting the importance to investor protection and market integrity of a securities fraud class action lawsuit pending before the Supreme Court. Oral arguments in the case – Goldman Sachs v. Arkansas Teachers Retirement System – are scheduled to begin October 29th. At stake is investors’ ability to hold corporations accountable in court for a certain type of securities fraud in which companies use false and misleading statements to maintain an inflated stock price.
“Millions of Americans today are deeply disillusioned about the integrity of our markets, convinced that the markets are rigged against them,” the groups warned. “With this critical case, the Supreme Court has the opportunity to help restore their faith by showing that no company is too big or too powerful to be held accountable. Our hope is that, by allowing defrauded investors the right to seek accountability, the Court will make it clear that words do matter and companies have a responsibility to speak truthfully.”