The ________ imposes liability under Section 10(b) and Rule 10b-5 on an outsider who misappropriates information about a company, in violation of his or her fiduciary duty, and then trades in the securities of that company.

Question

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The misappropriation theory is a legal theory used to impose liability on an outsider who misappropriates information about a company, in violation of his or her fiduciary duty, and then trades in the securities of that company. This theory was established by the United States Supreme Court in the case of United States v. O'Hagan (1997) and has since been used in many insider trading cases. The Insider Trading Sanctions Act and Sarbanes-Oxley Act are both related to insider trading but do not specifically address misappropriation theory. The tort of appropriation is a legal theory related to invasion of privacy and is not applicable in this context.

The ________ Imposes Liability Under Section 10(b) and Rule 10b-5