United States Ninth Circuit

Dismissal of a complaint claiming that defendant violated Section 16(b) of the Exchange Act by engaging in a short-swing trade in a company's stock as an insider, a "director by deputization," is reversed where, although the SEC had authority to adopt Rule 16b-3(d) and deference was owed to the SEC's interpretation of the rule, the Rule did not shield defendant from liability under Section 16(b).

Appellate Information

• Argued 05/03/2006
• Decided 08/14/2006
• Published 08/14/2006

Judges

• McKEOWN, Circuit Judge., Before STEPHEN REINHARDT, M. MARGARET McKEOWN, and RICHARD R. CLIFTON, Circuit Judges.

Court

• United States Ninth Circuit

Counsel

• For Appellant:
  
• Jonathan P. Meier and Richard E. Spoonemore, Sirianni Youtz Meier & Spoonemore, Seattle, WA, for the plaintiff-appellant., Allan A. Capute, Securities and Exchange Commission, Washington, D.C., for amicus curiae.


• For Appellees:
  
• Jason C. Vigna and Robert E. Zimet, Skadden, Arps, Slate, Meagher & Flom, LLP, New York, NY, for the defendant-appellee.