Chiarella vs. U.S.

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Chiarella vs. U.S.

A U.S. Supreme Court case holding that an employee of a company handling takeover bids who infers the names of the target companies using nonpublic information and buys or sells stock in them has not violated insider trading law. However, the employee may not reveal to anyone the names of the target companies. The case was decided in 1980.
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31) Arguably the most influential case resulting from this progeny was Chiarella v.
646, 654-55 (1983) (reaffirming requirement of breach of fiduciary duty for imposition of insider trading liability); Chiarella v.
For other examples of profits from having inside information regarding tender offers, see Chiarella v.
17) For the second proposition, the court relied upon Chiarella v.
Commentators generally credit Chief justice Burger with first proposing application of the misappropriation theory(297) in his dissent in Chiarella v.