Appeals Court Affirms Case Over Short-Swing Rules

Law360, New York (October 2, 2008, 12:00 AM EDT) -- An appeals court has affirmed a lower court's finding that National Semiconductor Corp. and Sterling Holding Company LLC do not have to disgorge short-swing profits because of two separate U.S. Securities and Exchange Commission rules.

In a ruling Wednesday, a three-judge panel of the U.S. Court of Appeals for the Third Circuit affirmed a lower court's decision to grant summary judgment to the companies in a shareholder derivative suit brought by Mark Levy on behalf of Fairchild Semiconductor International Inc.

The appellate court had previously considered...
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