The Wharf (Holdings) Limited v. United International Holdings, Inc.

While preparing a bid for an exclusive Hong Kong cable television license, The Wharf (Holdings) Limited (defendant) solicited help from United International Holdings, Inc. (plaintiff), orally agreeing to give United an option to buy 10 percent of the cable system's stock in exchange. United raised the money and told Wharf it was ready to exercise the option, but Wharf refused, and internal Wharf documents showed it never actually intended to let United exercise the option even when it made the offer. United sued under section 10(b) of the Securities and Exchange Act; the district court and Tenth Circuit both ruled for United, and the Supreme Court granted certiorari, with Wharf conceding the option itself was the security at issue.