United States Second Circuit

In an appeal of a judgment of liability for profits earned in short-swing insider trading prohibited by section 16(b) of the Securities Exchange Act, 15 U.S.C. section 78p(b), and from an order denying their motion for reconsideration, the District Court's decision is affirmed where it correctly: 1) determined the transactions were "purchases" of securities for purposes of section 16(b); 2) found that those transactions did not come within the scope of the "debt" and "borderline transaction" exceptions to section 16(b) liability; 3) rejected Defendants' argument that the scope of any liability found should be limited to Defendant Cannell’s pecuniary interest in the profits at issue; and 4) denied the motion for reconsideration.

Appellate Information

• Decided 06/04/2012
• Published 06/04/2012

Judges

• LIVINGSTON

Court

• United States Second Circuit

Counsel

• For Appellant:
  
• JACK FRUCHTER, STEVEN M. HECHT