R. Foster Winans was coauthor of a Wall Street Journal investment advice column (“Heard on the Street”) that, because of its perceived quality and integrity, had an impact on the market prices of the stocks it discussed. Winans was familiar with the Journal’s rule that the column’s contents were the Journal’s confidential information prior to publication. In spite of this, he gave advance information to Felis, a stockbroker, as to the timing and contents of the column. 

Felis bought and sold stocks based on the column’s probable impact on the market and shared the profits with Winans. The court did not find that the content of any of the columns was altered to further the profits of this stock-trading scheme. Both were convicted of violating Section 10(b) and Rule 10b-5. (They also were found guilty of violating the federal mail and wire fraud statutes.) Should the insider trading convictions be upheld?