SEC v. Unifund SAL

United States Court of Appeals for the Second Circuit

910 F.2d 1028 (1990)

Relevant factsFree

Unifund (defendant) bought over $2 million in Rorer stock and sold it immediately after Rorer's merger with Rhone was announced, earning substantial profits; the SEC (plaintiff) sued for insider trading under Exchange Act Section 10(b) without naming the source of any tip, relying instead on the unusual trading pattern, and obtained a preliminary injunction barring future violations and freezing Unifund's accounts indefinitely.

IssueFree

Whether the SEC must make a substantial showing of its complaint's likelihood of success to obtain a preliminary injunction in a securities-violation suit.

Holding & reasoning

The court resolved the question by applying the controlling rule to the facts and explaining precisely why the outcome followed. Its reasoning ties the doctrine to the record so you can reproduce the analysis on an exam.

Procedural history, concurrence & dissent

This section traces the case from the trial court through appeal and lays out how each opinion lands. Separate writings sharpen the majority's limits and flag the arguments most likely to resurface in class.

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