Securities & Exchange Commission v. Obus

How courts have described this case

Verbatim parenthetical descriptions written by other courts when citing this decision. Ranked by citation-network relevance.

• holding that § 10(b)’s scienter standard “appl[ies] broadly to civil securities fraud liability, including … tipper/tippee liability,” and that “conscious avoidance can be sufficient to establish tipper scienter”
• requiring that a person must “know that the information that is the subject of the tip is non-public and is material for securities trading purposes”
• explaining that whether 15 a tippee knew or should have known the tipper breached his duty depends on the tippee’s “own 16 knowledge and sophistication and on whether the tipper’s conduct raised red flags”
• finding evidence of personal benefit sufficient where tipper \hoped to curry favor with his boss\
• observing that “a tipper cannot avoid liability merely by demonstrating that he did not know to a certainty that the person to whom he gave the information would trade on it,” and noting that \recklessness” is \actionable” in civil settings
• observing that “a tipper cannot avoid liability merely 13 by demonstrating that he did not know to a certainty that the person to whom he gave the information would trade on it,” and noting that “recklessness” is “actionable” in civil settings

Source: CourtListener parenthetical corpus (CC0).