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Bush against suing third parties

WASHINGTON, June 13 (UPI) -- U.S. President George Bush, asked about a pending U.S. Supreme Court case, expressed concern about giving plaintiffs greater leeway in corporate fraud cases.

His feedback was on a case, scheduled to be heard next term, that could determine when third parties are financially liable to investors, The Washington Post said Wednesday. The matter will affect other cases, including an effort by Enron shareholders seeking to recoup losses.

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The case was filed by Charter Communications investors who want to pursue a lawsuit against two business partners who allegedly helped Charter mask financial problems. The matter resulted in a fissure between the U.S. Securities and Exchange Commission, which advocated filing a plaintiff's friend-of-the-court brief, and the Treasury Department, Federal Reserve Board and Office of the Comptroller of the Currency, which opposed the move.

On Monday, the day Bush shared his opinion, the U.S. solicitor general declined to file papers on shareholders' behalf in the case.

"The president's views are based on a policy of not expanding the scope of private shareholder litigation against third parties, not on any of the corporations involved in this case or related cases," Tony Fratto, a White House spokesman, said in a statement.

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