Supremes Side With Banks in Antitrust Action

Credit Suisse, Goldman won't face class action suit over late-'90s IPOs

By J. Kelman, Newser User

Posted Jun 18, 2007 2:40 PM CDT

(Newser) – The Supreme Court has broadened the shield protecting companies from antitrust lawsuits, ruling in a 7-1 decision this morning that investors cannot sue 16 banks they accuse of rigging Internet-boom-era IPOs. The majority said the SEC had adequately regulated banks' actions and that opening them up to this type of action would pose a "substantial risk of injury" to US capital markets.

The court dismissed suits demanding billions of dollars from Goldman Sachs, Credit Suisse, and 14 other banks, ruling that securities laws, not antitrust laws, should regulate their actions. Investors had accused banks of "laddering"—artificially upping post-IPO prices by forcing clients to buy stock—in several high-profile IPOs, including eBay's and Amazon.com's.

US Supreme Court ((c) kjetil_r)

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Supremes Side With Banks in Antitrust Action

Credit Suisse, Goldman won't face class action suit over late-'90s IPOs

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Facebook Could File IPO Papers Next Week: Insiders

Sources say Morgan Stanley is close to landing the deal

Wall Street Bonuses to Plummet

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Thanks, but no thanks, says Henry Blodget

Wall Street Will Lose 10K Jobs

New York comptroller predicts blow to economy

Hey, Lefties: This Supreme Court Should Scare You

Obama too timid on federal nominees, with big issues coming

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Supremes Side With Banks in Antitrust Action

Credit Suisse, Goldman won't face class action suit over late-'90s IPOs

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OTHER STORIES ON OUR RADAR

Today's other major decision

investors • Goldman Sachs • Credit Suisse • antitrust • Stephen Breyer • IPO • bank • US Supreme Court

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Facebook Could File IPO Papers Next Week: Insiders

Sources say Morgan Stanley is close to landing the deal

Wall Street Bonuses to Plummet

Falling revenues behind expected 40% plunge

Groupon Shares Going Gangbusters on Day One

Thanks, but no thanks, says Henry Blodget

Wall Street Will Lose 10K Jobs

New York comptroller predicts blow to economy

Hey, Lefties: This Supreme Court Should Scare You

Obama too timid on federal nominees, with big issues coming

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?