Law Commons^™

Friends With Benefits: Redefining Personal Gain In Insider Trading Under Salman V. United States, Wendy R. Becker

Duke Journal of Constitutional Law & Public Policy Sidebar

Since Congress has not enacted a statute outlawing insider trading, or the trading of securities based on non-public information, outright, courts have struggled to define what constitutes insider trading. The Supreme Court held that a fiduciary duty was breached when the insider privy to the information receives a “personal benefit.” This Commentary analyzes a pending Supreme Court case, Salman v. United States, which addresses whether pecuniary gain is needed to constitute the personal benefit necessary for insider trading, or if certain relationships are enough for the tip to inherently create a personal benefit for the insider. The author argues …

Asking The Right Federal Questions: Merrill Lynch V. Manning And The Exclusive Jurisdiction Provisions Of The Securities Exchange Act, Seth Taylor

Duke Journal of Constitutional Law & Public Policy Sidebar

Suppose you run a small corporation in the business of auctioneering stamps, coins, and other collectibles. Sensing that your corporation’s financial prospects are on the decline, large financial institutions drive the price of the company’s stock down. Your shareholders sue in state court alleging a breach of state law in manipulating stock prices while also referencing breaches of federal securities law.

Can the defendant financial institutions remove the case to federal court? This question is set to be answered by the Supreme Court in Manning v. Merrill Lynch, which deals specifically with whether section 27 of the Securities Exchange …