In a story for Reuters, “Facebook, Nvidia ask US Supreme Court to spare them from securities fraud suits,” Professor Michael Perino comments on Meta’s and Nvidia’s efforts in the U.S. Supreme Court to defend against federal securities fraud lawsuits.

The upcoming Supreme Court decisions could make it harder for private plaintiffs to use securities class actions to enforce federal rules aimed at punishing corporate misconduct.

Explaining that private rights of action are “a necessary supplement” to public enforcement efforts, Professor Perino argues that the U.S. Securities and Exchange Commission “is arguably under-resourced given the broad scope of its responsibilities,” adding that “[s]ecurities class action lawsuits effectively deputize private attorneys to bring actions on behalf of aggrieved investors.”