WASHINGTON - The Supreme Court agreed yesterday to decide whether federal securities law allows bondholders to sue bond trustees for allegedly aiding and abetting a bond-fraud scheme.

If such lawsuits are permitted, the justices indicated that they also would decide whether recklessness by bond trustees is sufficient to trigger fraud liability even if the trustees have not breached their indenture duties.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.