The Court noted that a ruling in favor of the investors bringing the suit would have had negative effects on foreign companies doing business within the United States. Explain the logic behind this line of reasoning.

In 2000, the cable operator Charter Communications wanted to satisfy stock analysts’ expectations about its revenue growth and thereby keep its stock price high. When it became apparent that revenues were not growing as projected, Charter’s management devised an accounting scheme that would artificially inflate its reported revenues. The scheme involved Charter’s digital cable converter (set-top) box suppliers, Scientific-Atlanta and Motorola. They agreed to overcharge Charter for the cable boxes in exchange for additional advertising on Charter’s cable network. A group of investors represented in this case by Stone ridge Investment Partners, sued Scientific- Atlanta and Motorola, alleging violation of Section 10(b) of the Securities Exchange Act of 1934 and of SEC Rule 10b-5. At trial, the district court dismissed the case. On appeal, the U.S. Court of Appeals for the Eighth Circuit upheld this ruling.