Feder v. Martin Marietta Corp.
United States Court of Appeals for the Second Circuit
406 F.2d 260 (1969)
George M. Bunker was the president and CEO of Martin Marietta Corp. (Martin) (defendant) in the early 1960s. In 1963, Bunker was offered a position on the board of Sperry Rand Corporation. Martin, a Sperry shareholder, approved of Bunker taking this position as a director. Bunker was a director for three months, after which he resigned. While Bunker served on Sperry’s board, Martin acquired more stock in Sperry. Four weeks after his resignation, Martin sold all of its Sperry stock. Feder (plaintiff), on behalf of Sperry, then brought this action against Martin for insider trading, claiming that Bunker was a deputy of Martin because Martin voted on whether to allow Bunker to take the director position, and because Bunker was the president and CEO of Martin. Feder then argued that it was Martin that was on Sperry’s board of directors and thus liable for insider trading. The district court ruled in favor of Martin. 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 171,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 13,800 briefs, keyed to 187 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.