High Court Justices Cut Stock Holdings

Financial Disclosures Cover 2007

Chief Justice John G. Roberts Jr. and Justice Samuel A. Alito Jr., whose investments forced them to sit out cases before the Supreme Court, have significantly reduced their stock holdings, their latest financial disclosures show.

Roberts sold all his shares in four companies last year -- Becton Dickinson, Cisco Systems, Citigroup and Merck -- worth $117,000 to $265,000.

Citigroup and Cisco were connected to pending cases in which Roberts initially declined to participate. Then he sold his shares in time to take part in the argument session and decision.

In those instances, Roberts became the eighth participating justice, averting the possibility of a 4 to 3 ruling.

In March, Roberts's stake in Pfizer left him unable to participate in a dispute over patient lawsuits against drugmakers. The court divided 4 to 4.

Alito sold all his stock in Intel, worth $15,000 to $50,000, and reduced his holdings in three other companies, Bristol-Myers Squibb, Exxon Mobil and McDonald's. The information was contained in the justices' annual report on their finances, released yesterday.

It was not clear whether the justices took advantage of a recent change in federal law that allows them to defer paying taxes on capital gains by reinvesting the proceeds in mutual funds, government bonds or other assets.

Justice Stephen G. Breyer, who also has had to step aside from cases at the court because of his investments, sold some stock but retains shares in dozens of companies and did not appear to alter his investment pattern.

The issue of investments arose most recently last month when the court could not muster enough justices to consider whether to intervene in a case.

Alito, Breyer and Roberts all have investments in companies that were asking the court to kill a lawsuit alleging that the companies aided South Africa's former apartheid government. Federal law calls for at least six of the nine justices to hear any case, but only five were eligible for this one. Justice Anthony M. Kennedy also did not participate because his son works for one of the companies being sued.

Alito, though he sold $100,000 to $250,000 in Exxon Mobil stock last year, retains shares valued in the same range. He is not taking part in the court's consideration of the $2.5 billion punitive damages judgment against the company for the Exxon Valdez oil spill in Alaska in 1989.

The justices report their financial holdings only in broad ranges. They disclose gifts and earnings, as well as some details of reimbursements they receive for travel. Home values are not included.

At least six and possibly seven justices are millionaires, depending on the value of Alito's assets. Justice Clarence Thomas and Kennedy are not.

But Thomas collected another $500,000 from publisher HarperCollins for his autobiography, "My Grandfather's Son," which came out in October. He has received more than $1 million for the book.

Kennedy and Thomas also were among six justices who supplemented their incomes as much as $25,000 by teaching at law schools. Kennedy taught in Austria, while Thomas taught at Creighton University in Omaha, Neb.

Justice Antonin Scalia collected a $33,000 advance for "Making Your Case: The Art of Persuading Judges," a book he co-wrote with Bryan Garner.

Breyer received $23,000 in royalties for his book, "Active Liberty."

Roberts's salary as chief justice was $212,100, while the other justices earned $203,000. Their pay increased by more than $5,000 in 2008.