X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

The debate over the proper reach of Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 as tools to combat insider trading was rekindled last month following two decisions in enforcement actions by the U.S. Securities and Exchange Commission against non-insiders who traded on material, nonpublic information. In SEC v. Cuban,1 a Texas federal district court dismissed the SEC’s enforcement action against Dallas Mavericks owner Mark Cuban for insider trading, holding that an express agreement to maintain nonpublic information in confidence is by itself insufficient to create the duty of trust and confidence which must underlie insider trading liability under a misappropriation theory. Cuban thus concluded that Rule 10b5-2(b)(1), which provides that a “duty of trust or confidence” sufficient to give rise to insider trading liability exists “[w]henever a person agrees to maintain information in confidence” exceeds the SEC’s rulemaking authority to proscribe conduct that is deceptive.

This content has been archived. It is available exclusively through our partner LexisNexis®.

To view this content, please continue to Lexis Advance®.

Not a Lexis Advance® Subscriber? Subscribe Now

Why am I seeing this?

LexisNexis® is now the exclusive third party online distributor of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® customers will be able to access and use ALM's content by subscribing to the LexisNexis® services via Lexis Advance®. This includes content from the National Law Journal®, The American Lawyer®, Law Technology News®, The New York Law Journal® and Corporate Counsel®, as well as ALM's other newspapers, directories, legal treatises, published and unpublished court opinions, and other sources of legal information.

ALM's content plays a significant role in your work and research, and now through this alliance LexisNexis® will bring you access to an even more comprehensive collection of legal content.

For questions call 1-877-256-2472 or contact us at customercare@alm.com

 
 

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.