Patricia B. Rocklage deceived her husband into revealing highly negative and nonpublic information about his publicly traded
Question:
Patricia B. Rocklage deceived her husband into revealing highly negative and nonpublic information about his publicly traded company in order to tip her brother who owned company stock. Mrs. Rocklage initially concealed from her husband her prior agreement with her brother to tip him if she learned significant negative information about the company. After Mrs. Rocklage acquired the information, and shortly before she actually tipped her brother, however, she told her husband that she was going to give her brother the information. Her husband asked her not to do so, but she did so anyway. Her brother sold his stock in the company on the next day the market opened. Has Patricia violated Section 10(b) and Rule 10b-5? Explain.
Step by Step Answer:
Law for Business
ISBN: 978-1259722325
13th edition
Authors: A. James Barnes, Terry M. Dworkin, Eric L. Richards