Cause of Action for Option Traders Against Insider Option Traders

• NCJ Number: 122120
• Journal: Harvard Law Review Volume: 101 Issue: 5 Dated: (March 1988) Pages: 1056-1060
• Author(s): W K S Wang
• Date Published: 1988
• Length: 5 pages
• Publication Format: Article
• Publication Type: Legislation/Policy Analysis
• Language: English
• Country: United States of America

Annotation

This article disputes a recent article pointing to a cause of action under rule 10b-5 for option stock traders against insider traders and argues that section 20 (d) of the Insider Trading Sanctions Act of 1984 (the Act) authorizes a private cause of action against insider option traders only for plaintiffs who had traded the equivalent option.

Abstract

To substantiate this interpretation, the legislative history of the Act is examined in detail, along with relevant appellate review of securities litigation. Under section 20 (d), option-trading plaintiffs may bring private causes of action against insider traders of options. 13 footnotes.