In United States v.O'Hagan,O'Hagan,a partner in the law firm of Dorsey & Whitney,represented Grand Met.Grand Met revealed to O'Hagan that Grand Met intended to make a tender offer to Pillsbury.Based on this confidential material information from his client O'Hagan purchased stock and options in Pillsbury prior to a public announcement of Grand Met's tender offer for Pillsbury.O'Hagan realized more than $4million in profits but was later convicted of insider trading.The U.S.Supreme Court upheld O'Hagan's criminal conviction based on the:

Question

Quizplus · Accepted Answer

The Misappropriation Theory of Insider Trading applies when an individual who owes a fiduciary duty to a source of confidential information misappropriates that information for personal gain. O'Hagan, as a lawyer representing Grand Met, owed a fiduciary duty to the company and misappropriated confidential information to profit from trading in Pillsbury stock. Therefore, his conviction was upheld under the Misappropriation Theory of Insider Trading. The other options are not applicable as they do not accurately reflect the circumstances of the case.

In United States V