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Cause of Action for Option Traders Against Insider Option Traders

NCJ Number
122120
Journal
Harvard Law Review Volume: 101 Issue: 5 Dated: (March 1988) Pages: 1056-1060
Author(s)
W K S Wang
Date Published
1988
Length
5 pages
Annotation
This article disputes a recent article pointing to a cause of action under rule 10b-5 for option stock traders against insider traders and argues that section 20 (d) of the Insider Trading Sanctions Act of 1984 (the Act) authorizes a private cause of action against insider option traders only for plaintiffs who had traded the equivalent option.
Abstract
To substantiate this interpretation, the legislative history of the Act is examined in detail, along with relevant appellate review of securities litigation. Under section 20 (d), option-trading plaintiffs may bring private causes of action against insider traders of options. 13 footnotes.