Welcome to Season 2 of Classroom Insiders, a podcast with Professor Karen Woody and her Insider Trading Seminar students from Washington and Lee University. They explore the arc and evolution of insider trading over the last century. Each episode will feature a discussion between Karen Woody and students about insider trading and regulation. Find out what the future lawyers of the university think about past and current legislation and learn more about this fascinating area of law.
In this episode of Classroom Insider Season 2, Professor Woody is joined by students Iyla and Mia to delve into the intricacies of insider trading law through the lens of the Panuwat case. The conversation focuses on Panuwat, a former executive at Medivation who utilized non-public information about Medivation’s acquisition by Pfizer to trade in Insight’s stocks, resulting in significant profits. This case is pivotal as it marks a notable expansion of insider trading law under the SEC’s ‘shadow trading’ concept, where the misappropriation theory and the collateral market connection were brought to a new light. The discussion covers the challenges and implications of this expansion, comparing it to previous cases like SEC v. Obis and highlighting the evolving nature of insider trading regulations through litigation rather than legislation. They also touch upon the potential future impacts of the ruling on corporate compliance and insider trading laws, making this episode essential listening for anyone in the compliance field.
Key highlights:
- Panuwat Case Details and SEC Allegations
- SEC’s Redefinition of Materiality
- Historical Context: SEC v. OBIS
- Debating the Fairness of the Panuwat Case
- Potential Implications and Future of Insider Trading Law
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