The Stoneridge Investment Partners, LLC v. Scientific-Atlanta, Inc., et al case in 2007 revolved around the issue of third-party liability in securities fraud. Charter Communications had inflated its revenue by $17 million through deceptive transactions with respondents Scientific-Atlanta and Motorola. Stoneridge Investment Partners sued these companies for their role in the scheme under Section 10(b) of the Securities Exchange Act and Rule 10b–5 issued by SEC which prohibit fraudulent activities related to securities trading. However, the Supreme Court ruled against Stoneridge on a 5-3 decision stating that they could not sue third parties unless they relied upon those parties' actions or statements when deciding to purchase or sell stocks. The court held that investors must prove reliance on misleading conduct; since investors did not know about respondents’ deceptive acts during relevant times, no liability existed as per this ruling.

In the dissenting opinion for Stoneridge Investment Partners, LLC v. Scientific-Atlanta, Inc., Justice John Paul Stevens argued that the majority's decision was inconsistent with prior case law and Congressional intent. He contended that secondary actors who knowingly engage in deceptive practices should be held liable under securities laws if their actions significantly contribute to a company’s ability to mislead investors. The defendants' conduct had both purpose and effect of creating a false appearance of material fact which misled Charter's auditors and investors about its revenue. Therefore, he believed they could be considered primary violators under Section 10(b). Furthermore, he criticized the majority for being overly concerned with potential negative impacts on businesses while ignoring Congress’ clear intention to protect investors from fraudulent activities.