Virginia Milstead (JD '04), "Insider Trading Claims Survive if Close in Time" -- Reuters

Pepperdine Caruso Law alumna Virginia Milstead (JD '04) has published the attorney analysis article "Insider Trading Claims Survive if Close in Time," in Reuters. The co-authored article examines the US Ninth Circuit Court of Appeals decision in In re Silver Lake Group, LLC regarding insider trading claim under Section 20A of the Securities Exchange Act of 1934.

Milstead is a litigation partner at Skadden, Arps, Slate, Meagher & Flom LLP in the firm's Los Angeles office

Excerpt from "Insider Trading Claims Survive if Close in Time"

By restricting Section 20A claims to plaintiffs who purchased soon after the defendant, it is more likely that the plaintiff and the defendant transacted in the same trading environment, such that the plaintiff was actually harmed by the alleged information asymmetry.

While in Silver Lake the 9th Circuit did not articulate a bright-light rule for the timing of the contemporaneous trading rule, the court's definition of "contemporaneous" and its reinforcement of the characterization of the rule as a stand-in for privity, resonates with the emerging consensus that suggests a 24-hour limit.

The compete article may be found at Reuters