“Fine Distinctions” in the Contemporary Law of Insider Trading

Sunday, July 7th, 2013 at 9:20 pm by Donald C. Langevoort

Donald C. Langevoort, “Fine Distinctions” in the Contemporary Law of Insider Trading.”  2013 Colum. Bus. L. Rev. 429.

The law of insider trading is evolving in a way that reflects a fundamental conflict between a vision of the prohibition as a moralistic response to greed on the part of the privileged––especially when they occupy roles as fiduciaries––and a vision of the prohibition as akin to more conventional securities fraud.  This Article traces this conflict back to Cady, Roberts, and then examines some contemporary issues that reflect this tension, especially the emergence of a theory of “reckless tipping.”

Introduction

Author Information

Thomas Aquinas Reynolds Professor of Law, Georgetown University Law Center. My thanks to Donna Nagy, Sy Lorne, David Becker, and Bob Thompson for helpful comments.