WASHINGTON-The U.S. Supreme Court said last week a class-action securities-fraud lawsuit against battery maker Valence Technology Inc. can go forward.
Shareholders became upset when Valence Technology’s stock fell after the company said it could not make batteries to Motorola Inc.’s specifications. The shareholders charge that shortly after going public in 1992, Valence overstated its ability to win the $100 million Motorola contract.
Valence’s attorneys had hoped the Supreme Court would set a national standard on when the 12-month statute of limitations countdown for filing securities-fraud lawsuits begins, but the court refused by letting an appeals court ruling stand.
In other action, the Supreme Court said it would look into whether states and local governments can independently impose trade sanctions on companies doing business in countries deemed to have violated human rights. Four states and 33 municipalities have imposed such sanctions, said the National Foreign Trade Council. The case specifically deals with a Massachusetts statute that imposes a 10 percent penalty on contract bids submitted by companies doing business with the country of Myanmar, formerly known as Burma.
