2nd Circ. Says Hacking May Be 'Deceptive' Under 10b

Law360, New York (July 23, 2009, 4:07 PM EDT) -- A deception under Section 10(b) of the Securities Exchange Act of 1934 need not involve a breach of fiduciary duty, an appeals court has said in vacating a lower court decision that let an alleged computer hacker off the hook for insider trading.

Regardless of Oleksandr Dorozhko's fiduciary duties, his alleged computer hacking still could have been “deceptive” under 10(b), Judge Jose A. Cabranes of the U.S. Court of Appeals for the Second Circuit said in an opinion issued Wednesday.

Dorozhko, of Uhzgorod, Ukraine, made nearly...
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