Chiarella worked at a company that printed financial documents. In one documents, he read confidential information that allowed him to buy stock and make a nice profit because of his knowledge. When sued by the SEC for insider trading, the Supreme Court found Chiarella:

Question

Quizplus · Accepted Answer

Chiarella was found not guilty by the Supreme Court because he did not owe a fiduciary duty to the shareholders of the companies whose stocks he traded. The Court held that mere possession of nonpublic information does not establish a duty to disclose when trading securities.

Chiarella Worked at a Company That Printed Financial Documents