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From Chiarella to Cuban: The Continuing Evolution of the Law of Insider Trading

By: Sabino, Anthony Michael; Sabino, Michael A. | Fordham Journal of Corporate & Financial Law, October 1, 2011 | Article details

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From Chiarella to Cuban: The Continuing Evolution of the Law of Insider Trading


Sabino, Anthony Michael, Sabino, Michael A., Fordham Journal of Corporate & Financial Law


I. PREFACE

What does an old-school financial printer (one from the bygone era of ink and printing presses) have in common with a present-day Internet billionaire (one more often seen on ESPN than CNBC)? Both were accused by the government of "insider trading." While the former defeated the charges brought against him in a case which began the Supreme Court's modern interpretation of federal insider trading laws, the latter recently suffered a setback at the appellate level in the form of a remand to the district court.

By now, legal professionals have likely discerned that the first scenario refers to the seminal 1980 United States Supreme Court case Chiarella v. United …

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