Securities and Exchange Commission v. Yun
United States Court of Appeals for the Eleventh Circuit
327 F.3d 1263 (2003)
Relevant factsFree
Yun (defendant) discussed her husband's confidential tip about Scholastic's disappointing upcoming earnings with her attorney in her office, in front of her friend and real-estate commission-splitting coworker Burch, who overheard and the next day bought put options in Scholastic, earning a 1,300% return after the earnings announcement; the SEC sued Yun for violating Exchange Act Section 10(b), and the district court ruled against her.
IssueFree
Whether a tipper who does not trade on inside information is liable for securities fraud if she expects a benefit from sharing the information.