Charles Murdock Professor of Law
“The Future of Insider Trading after Salman: Perpetuation of a Flawed Analysis or a Return to Basics,” 70 Hastings Law Journal 1547 (2019)
Securities laws were enacted in the 1930s in part to attempt to create a level playing field for investors. For decades, federal courts aggressively policed insider trading. In the 1980s, Justice Powell wrote two opinions permitting powerful interests to tilt the field in their favor. Recently, another decision allows federal courts to constrain a rash of insider trading by hedge funds. This article explores the history of insider trading decisions by federal courts and points the way to a more sensible and realistic approach.