A man who hacked into a computer network to gain advance information about a company’s financial reports can be sued for fraud under the Securities Exchange Act of 1934 even though he owed no fiduciary duty to the company, the 2nd U.S. Circuit Court of Appeals has ruled.
The circuit said there is nothing in the case law that “expressly imposes a fiduciary-duty requirement on the ordinary meaning of ‘deceptive’ where the alleged fraud is an affirmative misrepresentation rather than a nondisclosure.”
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