McGeorge School of Law

Gevurtz Authors Article on Insider Trading Case in Boston College Law Review

December 9, 2016

Distinguished Professor of Law Franklin A. Gevurtz

Distinguished Professor of Law Franklin A. Gevurtz

Distinguished Professor of Law Franklin A. Gevurtz' article, "The Overlooked Daisy Chain Problem in Salman," was published in an online supplement to the Boston College Law Review in November 2016 (Volume 58, Issue 6). The article is available to read online.

Article abstract: In Salman v. United States, the Supreme Court granted certiorari to resolve a conflict with United States v. Newman as to when corporate insiders receive sufficient personal benefit from making gifts of inside information to make the tip and consequent trade illegal. This Essay explores an overlooked aspect of these cases, the "daisy chain problem," which involves how the personal benefit element for illegal tipping applies to the subsequent tips that occur when the recipient of information from the corporate insider, in turn, passes the information on to others. This daisy chain problem could potentially distinguish the facts of Salman and Newman and thus deserves the attention of the Court and commentators.

Professor Gevurtz is an expert in corporate law. Courts, lawyers, students and scholars in the United States and abroad look to his treatise, Corporation Law, for authoritative guidance. Professor Gevurtz has written numerous law review articles addressing topics in corporate and securities laws, the laws of other business organizations, the antitrust laws, and the application of U.S. laws to overseas activities. These articles have clarified but also challenged long-standing corporate law doctrines, explored often-unrecognized practical implications of various business organization laws, and proposed innovative solutions to legal problems. They often reflect Professor Gevurtz' use of interdisciplinary approaches by undertaking historical research, empirical studies, and comparative law analysis. His works have been cited hundreds of times, including by the Supreme Courts of Delaware, Georgia, Minnesota, Pennsylvania, Rhode Island, Wisconsin and Wyoming, and by United States Courts of Appeals for the First, Ninth and D.C. Circuits. Read more >