Legal Research

U.S. Second Circuit Holds That Computer Hacking for Purposes of Trading on Inside Information May Be a "Deceptive Device"

By David Badertscher, PLL

Source: Lexology, August 17, 2009.

Second Circuit holds that computer hacking for purposes of trading on inside information may be a "deceptive device" under Section 10(b) even in the absence of a breach of any fiduciary duty
Sheppard Mullin Richter & Hampton LLP
"In SEC v. Dorozhko, 2009 WL 2169201 (2d Cir. July 22, 2009), the United States Court of Appeals for the Second Circuit held that computer hacking for purposes of obtaining and trading on inside information may be a ?deceptive device? under Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, even where the hacker owed no fiduciary duty to the issuer. "

Full post as published by New York Supreme Court Criminal Term Library on August 18, 2009 (boomark / email).