Dirks v. Securities and Exchange Commission
United States Supreme Court
463 U.S. 646 (1983)
Relevant factsFree
Former Equity Funding officer Secrist told Dirks (defendant) about the company's fraudulent, exaggerated assets specifically so Dirks would investigate and publicly expose the fraud, and Dirks's subsequent discussions with investors, some of whom sold their Equity Funding stock, led to an SEC investigation finding Dirks had aided and abetted insider trading; the court of appeals affirmed the SEC's finding.
IssueFree
Whether a tippee violates a fiduciary duty to the shareholders of the corporation on which he received a tip if the insider from whom he received the tip did not receive a benefit of any kind from giving the tip.
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