In four high-impact decisions announced in June, the U.S. Supreme Court significantly limited the scope of federal laws used by prosecutors and plaintiffs in pursuing alleged corporate fraud.
In Skilling v. U.S. and the related cases of media mogul Conrad Black and Alaska legislator Bruce Weyhrauch, the high court redefined the “honest services” criminal fraud statute to cover only bribes and kickbacks, instead of the range of illicit activities prosecutors have used the law to punish.