32 Pages Posted: 26 Feb 2008
This essay traces the evolution of insider trading jurisprudence, focusing on the three iconic Supreme Court decisions: Chiarella, Dirks, and O'Hagan. The essay argues that all three cases were seriously flawed because each failed to cohere as to either policy or doctrine. Just as a child might break his toy by attempting to force a square peg into a round hole, the Supreme Court made a hash of insider trading law (and Rule 10b-5 generally) by attempting to force insider trading into a paradigm - securities fraud - that does not fit.
Keywords: insider trading
JEL Classification: K22
Suggested Citation: Suggested Citation
Bainbridge, Stephen M., The Iconic Insider Trading Cases. UCLA School of Law, Law-Econ Research Paper No. 08-05. Available at SSRN: https://ssrn.com/abstract=1097744 or http://dx.doi.org/10.2139/ssrn.1097744