In the recent decision by the United States Supreme Court, Chadbourne & Parke LLP v. Troice, the dissent suggested that the Supreme Court may have unwittingly undermined the misappropriation theory of insider trading liability. In that case, the Supreme Court, analyzing the Securities Litigation Uniform Standards Act of 1998, held that “[a] fraudulent misrepresentation or omission is not made ‘in connection with’” a security “unless it is material to a decision by one or more individuals (other than the fraudster) to buy or sell” the security. Under misappropriation theory, however, the fraudster’s omission plays no role in the decision by another individual to buy or sell a security. Consequently, Troice may vitiate misappropriation theory. The opinion is available here.
Case to Watch – Chadbourne & Parke LLP v. Troice – Has the Supreme Court undermined the misappropriation theory of insider trading?
RELATED ARTICLES
Supreme Court Misses Its Chance To Define Limits of SEC’s Enforcement Authority
June 30, 2020 | The GEE Blog, SEC
Well, That Didn’t Take Long – and With No Fanfare, Decades of Administrative Law Are Upended
July 13, 2018 | Case to Watch, The GEE Blog
Supreme Court Decides Lucia – But the Saga Continues
July 9, 2018 | Case to Watch, The GEE Blog
First-Time Supreme Court Advocate Appointed to Argue the SEC’s Case in Lucia
January 23, 2018 | SEC, The GEE Blog
SEC’s Appointments Clause Dilemma Gets Worse
January 16, 2018 | SEC, The GEE Blog
Supreme Court Misses Its Chance To Define Limits of SEC’s Enforcement Authority
June 30, 2020 | The GEE Blog, SEC
Well, That Didn’t Take Long – and With No Fanfare, Decades of Administrative Law Are Upended
July 13, 2018 | Case to Watch, The GEE Blog
Supreme Court Decides Lucia – But the Saga Continues
July 9, 2018 | Case to Watch, The GEE Blog
First-Time Supreme Court Advocate Appointed to Argue the SEC’s Case in Lucia
January 23, 2018 | SEC, The GEE Blog
SEC’s Appointments Clause Dilemma Gets Worse
January 16, 2018 | SEC, The GEE Blog
U.S. Supreme Court Delivers Blow Limiting SEC Disgorgement Power
June 12, 2017 | SEC, The GEE Blog
U.S. Supreme Court Decides Salman, Reaffirms Broader View of Insider Trading
December 7, 2016 | Case to Watch, Insider Trading, The GEE Blog
U.S. Supreme Court Revisits Insider Trading in Salman
October 6, 2016 | Insider Trading, The GEE Blog
Watch What You Write, Watch What You Say
March 10, 2016 | Insider Trading, The GEE Blog
REST IN PEACE, NEWMAN – SO WILL THE GOVERNMENT LAY DOWN IN SALMAN?
October 5, 2015 | Insider Trading, The GEE Blog
INSIDER TRADING AND ADMINISTRATIVE COURTS – MORE ON TWO HOT TOPICS THAT HAVE NOW CONVERGED
September 28, 2015 | Insider Trading, SEC, The GEE Blog
WHY NEWMAN MIGHT NOT BE HEADED TO THE SUPREME COURT
August 11, 2015 | Insider Trading, The GEE Blog
NINTH CIRCUIT SLAPS BACK REMOTE TIPPEE’S NEWMAN DEFENSE
July 15, 2015 | Insider Trading, The GEE Blog
“HELLO, NEWMAN” -- GOVERNMENT CONTINUES TO LITIGATE REVERSED INSIDER TRADING CONVICTIONS
March 9, 2015 | Insider Trading, The GEE Blog
SCOTUS Limits Definition of “Tangible Object” under Sarbanes-Oxley Act
March 3, 2015 | Government Investigations, The GEE Blog
CRIMINAL INSIDER TRADING CONVICTIONS OVERTURNED IN FAR-REACHING RULING
December 23, 2014 | Insider Trading, The GEE Blog
Supreme Court Passes on Esquenazi, Makes Instrumentality Test Settled Law
October 6, 2014 | FCPA, The GEE Blog
Corporations and Unreasonable Searches and Seizures: Does the Supreme Court’s Decision in Riley v. California Signal the Rebirth of the 4th Amendment in White Collar Cases?
July 18, 2014 | Case to Watch, The GEE Blog
The Acquittal of Rengan Rajaratnum: A Precursor for Acquittals or No Action in Other “Remote Tippee” Cases?
July 15, 2014 | Bank Securities Fraud, The GEE Blog
Is the Second Circuit About to Put the Brakes on the Government’s Pursuit of Insider Trading “Tippees”?
April 29, 2014 | Insider Trading, The GEE Blog
Barnes & Thornburg Legal Alert - Supreme Court Opens a Pandora’s Box of Whistleblower Litigation
March 7, 2014 | The GEE Blog
The Government Has Frozen My Bank Accounts, What Do I Do Now? Analyzing Asset Forfeiture After Kaley v. U.S.
March 3, 2014 | Criminal Procedure, Government Investigations, The GEE Blog
The SEC and Its “Strange Bedfellows” Argue Against Investors Seeking Damages for Fraud – Are Rebuffed by the Supreme Court
March 3, 2014 | Bank Securities Fraud, The GEE Blog
A Little-Known Exception to the 4th Amendment: Is Your Company’s Confidential, Proprietary Data Safe from Government Inspection When Entering the U.S.?
February 27, 2014 | Privacy, The GEE Blog
DOJ Wins Big Insider Trading Case: Martoma Conviction; Bad News for Cohen and SAC
February 8, 2014 | Insider Trading, The GEE Blog
SEC Continues to Struggle in Insider Trading Jury Trials
February 7, 2014 | Insider Trading, The GEE Blog
Securities Regulators’ Increasing Use of Real-Time Monitoring Systems - Is Skynet Next?
January 31, 2014 | Financial Regulation, Government Investigations, Insider Trading, The GEE Blog
Warrant Required to Search Cell Phone?
January 27, 2014 | Criminal Procedure, The GEE Blog
Let the Light of Day Shine
January 18, 2014 | Financial Regulation, The GEE Blog
Barnes & Thornburg Legal Alert - Government Regulators Continue to Make Insider Trading a Trial Priority
January 16, 2014 | Financial Regulation, The GEE Blog
Supreme Court Case Likely to Resolve Dispute on What Government Must Prove in Bank Fraud Prosecutions
January 5, 2014 | Bank Securities Fraud, Financial Regulation, Government Investigations, The GEE Blog
RELATED PRACTICE AREAS
Subscribe
Do you want to receive more valuable insights directly in your inbox? Visit our subscription center and let us know what you're interested in learning more about.
View Subscription Center