Rule lOb-5

Rule lOb-5

An SEC rule that prohibits trading by insiders on material nonpublic information. This is also the rule under which a company may be sued for false or misleading disclosure.
References in periodicals archive ?
The court concluded that Robins failure to correct its earlier statements was actionable under the US securities laws, particularly Rule lOb-5.
However, the SEC's opinion, while technically addressing only brokers' behavior, was cast in terms of a general attack on insider trading under the SEC'S catchall antifraud rule, Rule lOb-5.
Under what circumstances, Loss asked, would a "tippee" -- a term that Loss invented to denote a person who received a "tip" of nonpublic corporate inforination -- be liable under SEC rule lob-5,(7) the principal antifraud provision of the federal securities laws?
The issue of whether scienter is required under rule lob-5 provides an example.
24) The law of insider trading has developed since that time, based almost entirely on a judicial and administrative gloss on the concise and very generally worded provisions of section 10(b) of the 1934 Act and SEC rule lob-5.
The CEO of a high-tech company that has been the target of 13 specious rule lob-5 suits calls these actions "legalized extortion" and their effects go far beyond the "payoffs" demanded.
These companies are a ready target of baseless rule lob-5 suits because their stock prices tend to be volatile.
The six largest firms have joined with the AICPA and concerned businesses in calling for federal securities reform to curb unwarranted litigation brought under rule lob-5.
Since the suspension, the SEC has filed a complaint against the Company alleging violations of Section 10(b) of the Securities Exchange Act of 1934 and Exchange Act Rule lOb-5.
predecessor of KPMG Peat Marwick) from a case alleging violations of section 10(b)-5 of the Securities Exchange Act of 1934, finding that rule lob-5 must be read flexibly, rather than not technically or restrictively.
Foremost is rule lob-5 under the Securities Exchange Act of 1934, which forbids a false statement of material fact or an omission of a necessary fact in connection with the purchase or sale of any security.
Aiding and abetting a rule lob-5 violation will result in liability.