Is SEC theory of liability in jeopardy? Supreme Court's view of misappropriation unclear

Article Abstract:

The US Supreme Court heard oral arguments in United States v. O'Hagan on April 16, 1997, and the result will determine the future of the misappropriation theory, the federal government's key weapon against insider trading. The US Court of Appeals for the 8th Circuit was the only one to reject this somewhat unconventional way of attributing insider trading liability, and the Supreme Court granted certiorari. The SEC has opposed a legal definition of insider trading as providing a recipe for fraud, but may have to seek one if the government loses this appeal.

United States, Cases, Insider trading in securities, Insider trading (Securities)

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Fears of liability spawn new focus on audit privilege

Article Abstract:

Corporations are more and more interested in a 'self-evaluative privilege' that would immunize them from litigation for all activities regarding compliance programs that meet the standards in the federal sentencing guidelines. Joseph E. Murphy of the ABA's corporate counseling committee recently wrote a proposal on the subject and an ABA task force will consider it. The proposal would shield all records produced in compliance programs from discovery during litigation.

Analysis, Management, Corporations, Indemnity against liability, Liability indemnity

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New amendments to limit corporate criminal liability?

Article Abstract:

California's Corporate Criminal Liability Act that took effect in Jan 1991 has created fear among executives because of the provision stating that corporations must notify regulators about 'serious concealed dangers.' Drafters of the law have acknowledged that the provision is constitutionally vague and seem willing to amend the measure. The amendments will be aimed at preventing challenges in the future.

Interpretation and construction, Laws, regulations and rules, Occupational health and safety, Occupational safety and health, Corporation law, Powers and duties, Criminal liability of juristic persons, Juristic persons criminal liability, California. Occupational Safety and Health Administration

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