4th Circ. Says Newsletter Tip Broke Securities Laws

Law360, New York (September 15, 2009, 8:01 PM EDT) -- A federal appeals court has upheld a lower court decision and ruled against a newsletter editor accused of defrauding investors with a $1,000 “sure thing” stock tip.

The U.S. Court of Appeals for the Fourth Circuit said Pirate Investor LLC, now known as Stansberry & Associates Investment Research, broke securities laws when it falsely claimed to have insider information on an upcoming deal involving a U.S. government contractor.

The U.S. Securities & Exchange Commission sued the newsletter and and its editor-in-chief, Frank Porter Stansberry, in 2003,...
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