Simpson Thacher Partners Author Article on Second Circuit Rejecting Novel Theory of Liability for Short-Swing Profits Under Section 16(b)
Partners Stephen Blake, Michael Garvey, Peter Kazanoff, Meredith Karp, James Rapp, Craig Waldman and Jonathan Youngwood authored an article titled, “Second Circuit: Rejects Novel Theory of Liability for Short-Swing Profits under Section 16(b),” which was published by Wolters Kluwer Insights: The Corporate and Securities Law Advisor. The article discussed the Second Circuit’s affirmation of the dismissal of two lawsuits brought by a shareholder seeking to impose Section 16(b) liability by pairing sales of outstanding shares made by controlling shareholders with share repurchases by corporations they control. The article detailed the case background and procedural history, as well as the Second Circuit’s reasoning for holding that plaintiff’s “novel theory of liability” was “invalid” and that Section 16(b) does not impose liability for the alleged pairing.
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