The case of the United States v. Bhagat is one of insider trading. According to Cheeseman, insider trading is "a situation in which an insider makes a profit by personally purchasing shares of the corporation prior to public release of favorable information or by selling shares of the corporation prior to the public disclosure of favorable information." [Cheeseman, H., (2013 pg 364) The Legal Environment of Business and Online Commerce, Seventh Edition] Atul Bhagat was an employee for NVIDIA Corporation. Nvidia won a contract to develop the Xbox for Microsoft after competing against many other companies for the position. The CEO sent informative emails about the contract, instructed the employees to keep the information confidential, and alerted them of a company-wide trading blackout on their Nvidia stock for several days.