United States Third Circuit

Dismissal of a derivative suit brought by a shareholder of XM Satellite Radio to recover alleged short-swing profits realized by certain corporate insiders is affirmed where the SEC's position, that an automatic adjustment to the conversion price of a derivative security is not a "purchase" for the purposes of Section 16(b) liability, was reasonable and merited deference.

Appellate Information

• Decided 09/19/2006
• Published 09/19/2006

Judges

• Before SLOVITER, WEIS, and GARTH, Circuit Judges.

Court

• United States Third Circuit

Counsel

• For Appellant:
  
• Jeffrey S. Abraham, Esq., Mitchell M. Twersky, Esq., Abraham Fruchter & Twersky LLP, New York, NY, for Appellant., Michael R. Robinson, Esq., Lisa A. Schmidt, Esq., Richards, Layton & Finger, P.A., Wilmington, DE, James A. Langan, Esq., Kathryn F. Taylor, Esq., Kirkland & Ellis LLP, Chicago, IL, Attorneys for Madison Dearborn Capital Partners III, L.P., Madison Dearborn Special Equity III, L.P., Madison Dearborn Partners III, L.P., and Madison Dearborn Partners, LLC., John C. Keeney, Jr., Esq., Hogan & Hartson LLP, Washington, DC, Carolyn S. Hake, Esq., Ashby & Geddes, Wilmington, DE, Attorneys for XM Satellite Radio Holdings, Inc.