On May 19, 2004, in Ontario Public Service Employees Union Pension Trust Fund v. Nortel Networks Corp.
, the Second Circuit decided that a party does not have standing to bring an action against a company under Section 10(b) of the Securities Exchange Act and Rule 10b-5 if the party did not purchase the company's stock. The plaintiffs in this case had purchased shares of a company that had a business relationship with the defendant based on representations made by the defendants. The Court, however, found that the plaintiffs lacked standing, holding that the private right of action under section 10(b) and Rule 10b-5 should be construed narrowly. The decison can be found at the Second Circuit website