Overview
Partners Elizabeth Cassady and John Byron, and associate Joseph McClure authored an article titled "SEC Case May Expand Scope Of Insider Trading Liability," which appeared in Law360.
The article discusses a US District Court for the Northern District of California case, Securities and Exchange Commission v. Panuwat. The SEC defeated summary judgment in the case that sought to impose securities fraud liability on an individual alleged to have engaged in “shadow trading”—that is, trading securities of a competitor based on non-public information gleaned from his employer. It serves as a reminder of the SEC's willingness to pursue new and aggressive theories of liability and creates a need for companies to consider the scope of their insider trading policies and training on restricted trading.
