Posts tagged Dirks v. SEC.
A unanimous Supreme Court reaffirmed the "gifting" theory of insider trading under Dirks and rejected Newman "to the extent" it required more.
The Court's long-standing rule in Dirks v. SEC, 463 U.S. 646, 664 (1983) allows a jury to infer a tipper's personal benefit "where the tipper receives something of value in exchange for the tip or 'makes a fit of confidential information to a trading relative or friend.'"
Recently, the Second Circuit appeared to limit the "gifting" theory. In United States v. Newman, 773 F.3d 438, 452 (2nd Cir. 2014), cert. denied, 577 U.S. ___ (2015), the Court ...
Posted in: Insider Trading Litigation, Supreme Court
Tags: burr and forman, burr forman, Dirks v. SEC, gifting, insider-trading, Salman v. United States, SEC, Securities and Exchange Commission, securities litigation, Securities Litigation & Arbitration, supreme court