United States Court of Appeals for the Second Circuit
220 F.3d 29 (2000)
Philip Frost (defendant) was the Chairman and CEO of IVAX. He was also the sole general partner and shareholder of FNLP, which owned 12.8 percent of IVAX’s stock. Frost was also a director and owned 17.3 percent of NAVI. Frost and FNLP together owned 50.8 percent of NAVI stock. At several different times in 1995 and 1996, Frost and FNLP purchased shares of IVAX, and NAVI sold shares of IVAX. NAVI earned substantial profits from its sale of IVAX stock. Feder then brought suit against Frost, alleging that he had engaged in insider trading in violation of § 16(b) of the Exchange Act, as he was a beneficial owner of IVAX, since he controlled more than ten percent of IVAX stock. Feder argued that Frost was required to report his dealings in its stock pursuant to SEC Rule 16a-1, and in not doing so, he engaged in insider trading in violation of § 16(b). The district court ruled in favor of Frost. Feder then appealed to the Second Circuit Court of Appeals.
Rule of Law
Holding and Reasoning (Winter, C.J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.
Here's why 220,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 14,100 briefs, keyed to 189 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.