Securities Regulation Daily Wrap Up, BENEFICIAL OWNERSHIP—S.D.N.Y.: Short-swing trading prohibition did not apply to CEO's transactions, (Jan 14, 2022)

By Rodney F. Tonkovic, J.D.

The CEO traded in two separate classes of stock and only realized long-term profits.

A district court dismissed an action to recover short-swing trading profits after finding that the statutory purpose of Exchange Act Section 16(b) was not implicated. In this case, a company's CEO bought one class and sold another class of compa ...