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Reinventing Insider Trading: The Supreme Court Misappropriates the Misappropriation Theory

56 Pages Posted: 2 Mar 2013  

Carol B. Swanson

Hamline University - School of Law

Date Written: January 1, 1997

Abstract

When the Supreme Court endorsed the controversial misappropriation theory last summer in United States v. O’Hagan, perhaps the most important securities fraud decision in decades, the Court reinvented insider trading liability. Professor Swanson examines the opinion’s underpinnings and impact, concluding that the Court has crafted a liability theory with too little content and too many open questions. Considering this decision to be a lost opportunity to clarify a most difficult legal area, the author describes how insider trading regulation will now struggle forward into the next century.

Keywords: Insider trading, misappropriation theory, United States v. O’Hagan, liability theory, Securities and Exchange Commission, SEC, fraud, ITSA, ITSFEA

Suggested Citation

Swanson, Carol B., Reinventing Insider Trading: The Supreme Court Misappropriates the Misappropriation Theory (January 1, 1997). Wake Forest Law Review, Vol. 32, p. 1157, 1997. Available at SSRN: https://ssrn.com/abstract=1929850

Carol B. Swanson (Contact Author)

Hamline University - School of Law ( email )

1536 Hewitt Avenue
Saint Paul, MN 55104-1237
United States

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