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.
References in periodicals archive ?
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.
19, 24 (1987) (decided after Justice Powell retired but before Justice Kennedy took his seat); see also Chiarella v.