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- Keyword
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- Computer; fiduciary; hacking; insider trading; securities; Securities Exchange Act; hacker-seller; 10b-5 (1)
- Mutual fund; derivate suit; direct suit; demand; Northstar Financial Advisors Inc. (1)
- Regulation A; Reg. A; Regulation A-Plus; Regulation A+; JOBS Act; financial crisis; Blue Sky (1)
- V. Schwab Investments; independent directors (1)
Articles 1 - 3 of 3
Full-Text Articles in Law
Clicks And Tricks: How Computer Hackers Avoid 10b-5 Liability, Ryan H. Gilinson
Clicks And Tricks: How Computer Hackers Avoid 10b-5 Liability, Ryan H. Gilinson
Brooklyn Law Review
This note argues that computer hackers who sell inside information instead of trading on it themselves, referred to in the note as hacker-sellers, avoid liability under Section 10(b) of the Securities Exchange Act and SEC Rule 10b-5. Rule 10b-5 criminalizes the use of a manipulative or deceptive device “in connection with the purchase or sale of any security.” Hacker-sellers fall outside the scope of this rule for two reasons. First, the type of hacking employed by hacker-sellers is not always “deceptive,” and only the forms of hacking which deceive the computer into thinking an authorized user is seeking access are …
Regulation A-Plus’S Identity Crisis: A One-Size-Fits-None Approach To Capital Formation, Zachary Naidich
Regulation A-Plus’S Identity Crisis: A One-Size-Fits-None Approach To Capital Formation, Zachary Naidich
Brooklyn Law Review
This note considers whether, and in what ways, Regulation A-Plus will change how businesses access growth capital. It concludes that Regulation A-Plus is a largely unnecessary addition to the already existing range of funding options. The Regulation is poised to change how firms access capital but is unlikely to increase total access or fundraising. Further, this change is unlikely to promote financial health. The note ultimately concludes that regulators should focus on improving existing mechanisms and not attempt to introduce a new and unnecessary one.
An Exception To The Derivative Rule: Allowing Mutual Fund Investors To Bring Suits Directly, Jamie D. Kurtz
An Exception To The Derivative Rule: Allowing Mutual Fund Investors To Bring Suits Directly, Jamie D. Kurtz
Brooklyn Law Review
Mutual funds differ greatly from traditional corporations in the way they are formed and operated. Despite these differences, courts apply the same rules for derivative shareholder litigation to both types of entities. While these rules make sense and were mostly created with corporations in mind, courts have generally been unwilling to consider mutual funds’ unique characteristics in determining whether to allow direct litigation from shareholders. This note explores those unique characteristics and the usual policy reasons for requiring derivative litigation. It concludes that in most cases these unique characteristics make a derivative suit nearly impossible to sustain. Further, the normal …