The Securities and Exchange Commission is recommending that the U.S. solicitor general's office advocate a position taken by investors on the question of whether shareholders can file lawsuits against third parties for the actions of the shareholders' company, the Journal said, citing people familiar with the matter. An SEC spokesman had no comment on Monday morning. The recommendation comes as concerns have arisen in recent weeks about the agency's commitment to investor protection.

The third-party question comes in a case before the Supreme Court. The high court is reviewing whether vendors that did business with Charter Communications Inc. (CHTRcharter communications inc (CHTR) can be held liable for allegedly helping the company inflate its financial results.

Meanwhile, high-profile plaintiffs lawyer William Lerach is asking the Supreme Court to review a case that involves investment bankers who worked with Enron Corp. He is alleging that several Wall Street firms should be held liable for Enron's accounting fraud because they financed transactions Enron used to inflate its financial results