Does Sen. Dodd’s Bill seek to overturn Stoneridge v. Scientific Atlanta?


On page 795 of the 1,136 page Bill, Senator Dodd seems to be looking to overturn two important decision.  The Stoneridge and Central Bank cases. In his bill Senator Dodd seems to want to assess liability to third parties who enter into a business transaction with a party who is not acting legally even if the third-party does not take part in the illegal activity.   As reported in the Wall Street Journal on November 13, 2009.

This could present a problem for a clearing firm who is normally the party in a transaction with the most money.  Hmmmm ……