The WSJ law blog reports that Senators Arlen Specter (D-PA) Jack Reed (D-RI) and Edward Kaufman (D-DE) are pushing legislation to overturn the Supreme Court's decision in Stoneridge Investment Partners v. Scientific-Atlanta. In this case, the Supreme Court held, 5-3, that private rights of action under Section 10(b) of the Securities Act do not reach third-party actions where shareholders did not rely upon the third party's actions or statements. Section 10(b) did not create such "scheme liability," the Court held.

Stoneridge was a very significant case — easily one of the most important securities-law cases of the past ten years. Overturning it would also be quite significant. As the WSJ reports, it would "give plaintiffs lawyers — especially those who file shareholder fraud suits — a shot in the arm."

For prior VC posts on Stoneridge see here, here, and here. In addition, here is a a Federalist Society on-line debate on the decision and background materials and the webcast of a mini-conference on the case sponsored by the Center for Business Law and Regulation at Case Western Reserve University.

UPDATE: Professor Bainbridge has a lengthy post on Stoneridge and the proposed legislation here.

One of President Obama's first acts as President was to sign legislation overturning the Supreme Court's decision in Ledbetter v. Goodyear Tire & Rubber and make it easier to file pay discrimination claims. As David Ingram reports, this may have been a sign of more to come, as Congressional Democrats are seeking to undo several significant Roberts Court decisions.

As I noted earlier this week, Senator Specter and others are seeking to overturn the Court's Stoneridge decision to create the potential for third-party liability for securities fraud actions. Also in the works is legislation to overturn Riegel v. Medtronic, which found that the Medical Device Act preempts common law claims against medical device manufacturers, as well as Twombly and Iqbal, two decisions that tightened notice-pleading requirements.