Securities and Exchange Commission v. Sargent

Webcasting-company president Shepard (defendant) learned confidentially of a tender offer for Purolator and, despite agreeing to secrecy, told his dentist friend Sargent (defendant), who bought Purolator shares and profited $141,768 after the public announcement; the SEC (plaintiff) sued both, and the district court ordered joint and several disgorgement of Sargent's profits but denied injunctive relief and civil penalties, prompting the SEC's appeal.