Discovery Exec's Insider Trading Suit Tossed By 2nd Circ.

Law360, New York (January 7, 2013, 4:38 PM EST) -- The Second Circuit on Monday affirmed a lower court's dismissal of a shareholder's insider trading suit alleging a former director of Discovery Communications Inc. violated a federal rule governing ill-gotten securities gains within a six-month period.

The three-judge panel said the short-swing profit rule, which provides for the disgorgement of profits that corporate insiders gain from a purchase or sale of any equity security in less than six months, does not apply to transactions involving separately traded, nonconvertible stocks with different voting rights such as those...
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