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  • Writer's pictureKirk Hartley

Monday at SCOTUS Was Not a Good Day for Defendants in Tort and Fraud Cases

Monday was not a good day for defendants at SCOTUS. Set out below are four overview statements by LAW360.  One might think the litigation pendulum is swing back in favor of plaintiffs. Indeed, the securities and bankruptcy fraud cases were decided on a 15-1 basis.

“The U.S. Supreme Court ruled Monday that a consumer could not sue Spokeo Inc. for mere technical violations of the Fair Credit Reporting Act, but left the door open for plaintiffs in other cases to use statutory violations to establish standing, ruling that the Ninth Circuit used an incomplete analysis when it ruled consumers can sue companies without alleging actual injury.”

“The U.S. Supreme Court unanimously ruled Monday that federal securities laws do not preempt certain claims from being brought in state court, in a decision that allows a shareholder suit against a Merrill Lynch unit and other Wall Street firms to proceed in New Jersey state court on claims they engaged in a manipulative short-selling campaign against them.” 

“The U.S. Supreme Court refused Monday to accept a narrow interpretation of the phrase “actual fraud” for purposes of determining when debts arising from wrongdoing can be discharged through bankruptcy, expressing concern that doing so would allow debtors to game the courts.” 

“The U.S. Supreme Court refused Monday to review a $236 million trial judgment against ExxonMobil Corp. in a groundwater contamination case in New Hampshire, leaving in place a verdict the energy giant claims is a violation of its due process rights.”

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