Second Circuit to Computer Hackers: Insider Trading Laws Apply

14 August 2009
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This client update discusses the July 22, 2009 Second Circuit Court decision in which the Court potentially strengthens the SEC's ability to combat insider training by making clear that a fiduciary-duty requirement is not an element of every violation of Section 10(b) that involves a “deceptive device” and establishes that computer hacking may serve as the basis for an insider trading action.