Words from on high about Rule 10b-5: Chiarella's history, Central Bank's future
Article Abstract:
Federal securities jurisprudence adheres to an equilibrium model in which decisions by the US Supreme Court can influence lower court decision-making in the short term but the equilibrium returns eventually through revisionist interpretation. Review of the 1980 Supreme Court decision in Chiarella v. United States and the 1994 decision in Central Bank v. First Interstate Bank suggests that securities fraud cases follow this pattern. The lower courts are inclined to find liability based on an understanding of inside trading that does not change with Supreme Court interpretations.
Publication Name: Delaware Journal of Corporate Law
Subject: Law
ISSN: 0364-9490
Year: 1995
User Contributions:
Comment about this article or add new information about this topic:
Accurate calculation of short-swing profits under section 16(b) of the Securities Exchange Act of 1934
Article Abstract:
The transportation algorithm problem solving method used in management science should replace the lowest-in, highest-out method for determining short-swing profits when complying with the Securities Exchange Act's section 16(b). The widely used algorithm is a more accurate method. It will also produce the maximum profit required by the US 2d Circuit Court of Appeals in Smolowe v. Delendo Corp., a case whose misreading has often led to calculation errors.
Publication Name: Delaware Journal of Corporate Law
Subject: Law
ISSN: 0364-9490
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
A mature synthesis: O'Hagan resolves "insider" trading's most vexing problems
Article Abstract:
The US Supreme Court in United States v. O'Hagan clarified SEC Rule 10b-5 and harmonized insider trading law. The Court defined insider trading, validated Rule 14e-3, and affirmed the applicability of mail and wire fraud legislation to insider trading. This type of interpretation of the securities law will not likely be repeated in future Supreme Court cases.
Publication Name: Delaware Journal of Corporate Law
Subject: Law
ISSN: 0364-9490
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Obscenity law defies all reason. Now that the CDA's history, let's plan anew. Decisions reflect nature of media; rulings to strike Communications Decency Act, uphold must-carry law, highlight 'Net's interactivity
- Abstracts: Wireless worries: experts raise concerns about city-run wireless Internet services. 9th circuit elevates the Internet
- Abstracts: Worker consultation: different mechanisms, different duties
- Abstracts: 'Zurko' raises issue of patentability standards; high court to rule on whether agency deference should apply to PTO patentability decisions
- Abstracts: IRS revokes 1993 PLR on multiple employer rabbi trust funded with employer stock. Two wrap-around deferred compensation plans approved by IRS