Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 2 of 2
Full-Text Articles in Securities Law
Outsider Hacking And Insider Trading: The Expansion Of Liability Absent A Fiduciary Duty, James A. Jones Ii
Outsider Hacking And Insider Trading: The Expansion Of Liability Absent A Fiduciary Duty, James A. Jones Ii
Washington Journal of Law, Technology & Arts
In January 2008, the United States District Court for the Southern District of New York held that trading put options of a company’s stock based on inside information allegedly obtained by hacking into a computer network did not violate antifraud provisions of federal securities law. The court ruled that the defendant’s alleged “hacking and trading” did not amount to a violation of section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, promulgated thereunder, because there was no proof the hacker breached a fiduciary duty in obtaining the information. The United States Court of Appeals for the Second …
Communications Decency Act Provides No Safe Harbor Against Antifraud Liability For Hyperlinks To Third-Party Content Under The Securities And Exchange Act, Sheri Wardwell
Washington Journal of Law, Technology & Arts
In 2008, the U.S. Securities and Exchange Commission (SEC) released interpretive guidelines regarding antifraud liability for statements and disclosures made on company Web sites. The SEC noted that a company may incur both criminal and civil liability under section 10(b) of the Securities Exchange Act and Rule 10b-5 for hyperlinks to third-party content. However, the Communications Decency Act, 47 U.S.C. § 230(c), expressly preempts civil liability for interactive computer service providers that post hyperlinks to third-party content on their Web sites. This Article examines whether section 230 immunizes companies from civil liability for hyperlinks to third-party content despite the SEC’s …