March 3, 2008
The article analyzes the recent decision in SEC v. Dorozhko, in the United State District Court in the Southern District of New York. The SEC filed a lawsuit against an individual, Oleksandr Dorozhko, who without authorization entered into the website of IMS Health and then traded that company's stock based on the information he gathered. The judge denied the SEC's motion for a preliminary injunction to freeze the proceeds of the trades of the stock executed by Dorozhko. The article points out how the decision underscores certain parameters of insider trading laws, in that the defendant's wrongdoing and ill-gotten gains misappropriated from a computer system were not grounds for the 10(b) violation because the defendant did not owe a fiduciary duty to the company.Download File (PDF, 190.41 K)
