In the case of Levy v. Industrial Finance Corporation, et al., 1927, the United States Supreme Court ruled in favor of Industrial Finance Corporation. The dispute arose when Mr. Levy claimed that he had been defrauded by a group of defendants including the corporation and its officers during his purchase of stock from them. He sought to recover damages for alleged misrepresentations made about the value and prospects of said stock which led him to buy it at an inflated price. However, upon review, it was found that there were no federal questions involved in this case as all issues pertained strictly to state law - specifically those regarding fraud and deceit under Maryland's laws where both parties resided and transacted business together; hence they did not fall within jurisdictional purview of federal courts or warrant their intervention according to existing statutes then governing diversity cases (Judicial Code §24). Therefore, despite acknowledging potential merit in plaintiff's claims if proven true under appropriate legal forum i.e., state court system instead hereof; SCOTUS dismissed appeal on grounds aforementioned thereby upholding lower appellate court decision against Mr.Levy.

In the dissenting opinion for Levy v. Industrial Finance Corporation, Justice Stone argued that the majority's decision to uphold a state law allowing corporations to avoid liability by transferring assets was inconsistent with previous rulings and principles of equity. He contended that such laws could be used as tools for fraud, enabling corporations to evade their obligations at the expense of creditors and shareholders. Furthermore, he disagreed with the majority's interpretation of constitutional limitations on states' power over interstate commerce and contracts. In his view, these powers should not extend so far as to allow states to sanction corporate practices which undermine fairness in business transactions or violate rights protected under federal law.