Court Construes Short-Swing Profit Rule

, New York Law Journal


In their Second Circuit Review, Martin Flumenbaum and Brad S. Karp, members of Paul, Weiss, Rifkind, Wharton & Garrison, discuss 'Gibbons v. Malone,' in which the U.S. Court of Appeals for the Second Circuit considered a novel application of the "short-swing profit rule" of Section 16(b) of the Securities Exchange Act of 1934 (Exchange Act).

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