Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Review the Insider Trading (https://www.viddler.com/embed/1f5a9785/?f=1&autoplay=0&player=full&secret=97426822&loop=0&nologo=0&hd=0) Review the summary of United States v. Newman, 773 F.3d 438 (2d Cir. 2014) Assume Ken Hastings (cookout host) and

Review theInsider Trading(https://www.viddler.com/embed/1f5a9785/?f=1&autoplay=0&player=full&secret=97426822&loop=0&nologo=0&hd=0)

Review the summary ofUnited States v. Newman,773 F.3d 438 (2d Cir. 2014)

Assume Ken Hastings (cookout host) and Tim Daniels (Ken's tennis partner) both bought stock in New World Industries as soon as the market opened on Monday and all profited 30% after the press announcement by Mrs. Chen. Pursuant to their agreement, Tim Daniels paid Ken Hasting 5% of the profit he made on the transaction.

  1. With regard to Judith Chen, Steve Chen, Ken Hastings and Tim Daniels, which of these parties could be considered an "insider" under rule 10(b)(5) of the Securities Act of 1934? Explain why or why not.
  2. Which of these parties could have tipper or tippee liability in this case?
  3. Did Judith Chen's actions in telling her husband about the settlement breach her fiduciary duty?
  4. Who actually obtained a personal benefit from the tip and how?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Criminal Law

Authors: Jonathan Herring

11th Edition

1352005336, 978-1352005332

More Books

Students also viewed these Law questions