Mark D. Harris and Margaret A. Dale Court Accepts SEC's 'Shadow Trading' Theory of Insider Trading
In their Securities and Corporate Litigation column, Margaret Dale and Mark Harris discuss the recent case 'SEC v. Panuwat', where a California district court allowed a case of shadow trading to go forward, seemingly for the first time.
February 28, 2022 at 12:00 PM
6 minute read
Securities Litigation
Courts often entertain insider-trading cases where individuals are accused of using material non-public information (MNPI) gathered from their employers to trade in other companies' securities. See, e.g., SEC v. Huang, 684 F. App'x 167 (3d Cir. 2017) (unpub'd) (former employee at a large bank misused customers' credit-card transaction data to guide trading in merchant companies' securities).
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