{"id":1113,"date":"2021-10-25T16:39:29","date_gmt":"2021-10-25T20:39:29","guid":{"rendered":"https:\/\/www.law.georgetown.edu\/american-criminal-law-review\/aclr-online\/volume-54\/its-all-derivative-insider-trading-without-a-personal-benefit\/"},"modified":"2025-05-12T11:09:27","modified_gmt":"2025-05-12T15:09:27","slug":"its-all-derivative-insider-trading-without-a-personal-benefit","status":"publish","type":"page","link":"https:\/\/www.law.georgetown.edu\/american-criminal-law-review\/aclr-online\/volume-54\/its-all-derivative-insider-trading-without-a-personal-benefit\/","title":{"rendered":"It\u2019s All Derivative: Insider Trading Without a Personal Benefit"},"content":{"rendered":"<p><span class=\"Apple-converted-space\">\u00a0<\/span>The Supreme Court recently weighed different interpretations of insider trading liability in <i>Salman v. United States<\/i>. The first piece of this two-part series dealt with the arguments of the parties and the muddled case law. Courts have struggled with conflicting interpretations of the \u201cclassical theory\u201d of insider trading as stated in the seminal case of <i>Dirks v. SEC<\/i>. The previous uncertainty in cases such as <i>Salman <\/i>comes from the following question: under what circumstances can a tippee (a person receiving confidential corporate information) be held liable for insider trading?\u00a0<i>Dirks <\/i>held that the test to trigger liability is whether the corporate insider will in some way personally benefit from his disclosure to the tippee. It also held that liability derivatively extends to the tippee only if the tippee has reason to know that the information was disclosed in breach of a fiduciary duty. The Court in <i>Salman<\/i>, by simply reaffirming <i>Dirks<\/i>, missed an opportunity to significantly clarify tippee liability. While <i>Salman <\/i>involved a close relationship between brothers-in-law, lower courts will continue struggling to define whether a more remote relationship is sufficient to satisfy <i>Dirks<\/i>\u2019 \u201cpersonal benefit\u201d test.<\/p>\n<p><a href=\"https:\/\/www.law.georgetown.edu\/american-criminal-law-review\/wp-content\/uploads\/sites\/15\/2021\/10\/54-0_Davidian_Insider_Trading.pdf\">Read More<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0The Supreme Court recently weighed different interpretations of insider trading liability in Salman v. United States. The first piece of this two-part series dealt with the arguments of the parties [&hellip;]<\/p>\n","protected":false},"author":4766,"featured_media":0,"parent":1023,"menu_order":3,"comment_status":"closed","ping_status":"closed","template":"abstract.php","meta":{"_acf_changed":false,"_price":"","_stock":"","_tribe_ticket_header":"","_tribe_default_ticket_provider":"","_tribe_ticket_capacity":"0","_ticket_start_date":"","_ticket_end_date":"","_tribe_ticket_show_description":"","_tribe_ticket_show_not_going":false,"_tribe_ticket_use_global_stock":"","_tribe_ticket_global_stock_level":"","_global_stock_mode":"","_global_stock_cap":"","_tribe_rsvp_for_event":"","_tribe_ticket_going_count":"","_tribe_ticket_not_going_count":"","_tribe_tickets_list":"[]","_tribe_ticket_has_attendee_info_fields":false,"footnotes":"","_tec_slr_enabled":"","_tec_slr_layout":""},"class_list":["post-1113","page","type-page","status-publish","hentry"],"acf":[],"ticketed":false,"_links":{"self":[{"href":"https:\/\/www.law.georgetown.edu\/american-criminal-law-review\/wp-json\/wp\/v2\/pages\/1113","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.law.georgetown.edu\/american-criminal-law-review\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.law.georgetown.edu\/american-criminal-law-review\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.law.georgetown.edu\/american-criminal-law-review\/wp-json\/wp\/v2\/users\/4766"}],"replies":[{"embeddable":true,"href":"https:\/\/www.law.georgetown.edu\/american-criminal-law-review\/wp-json\/wp\/v2\/comments?post=1113"}],"version-history":[{"count":3,"href":"https:\/\/www.law.georgetown.edu\/american-criminal-law-review\/wp-json\/wp\/v2\/pages\/1113\/revisions"}],"predecessor-version":[{"id":1116,"href":"https:\/\/www.law.georgetown.edu\/american-criminal-law-review\/wp-json\/wp\/v2\/pages\/1113\/revisions\/1116"}],"up":[{"embeddable":true,"href":"https:\/\/www.law.georgetown.edu\/american-criminal-law-review\/wp-json\/wp\/v2\/pages\/1023"}],"wp:attachment":[{"href":"https:\/\/www.law.georgetown.edu\/american-criminal-law-review\/wp-json\/wp\/v2\/media?parent=1113"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}