56 Pages Posted: 2 Mar 2013
Date Written: January 1, 1997
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: 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