2nd Circ. Revives $1.3M Obus Insider Trading Suit

Law360, New York (September 6, 2012, 3:41 PM EDT) -- The Second Circuit on Thursday revived a $1.3 million U.S. Securities and Exchange Commission lawsuit accusing hedge fund manager Nelson Obus and two others of insider trading on Allied Capital Corp.'s purchase of industrial products supplier SunSource Inc.

A three-judge panel said a lower court had erred in tossing the suit, ruling the SEC submitted sufficient evidence to hold Obus, Wynnefield Capital Inc. president Peter Black and General Electric Capital Corp. analyst Thomas Strickland liable for misappropriating information about SunSource’s 2001 acquisition.

“We hold that the...
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