Freeman v. Decio
United States Court of Appeals for the Seventh Circuit
584 F.2d 186 (1978)
After reporting consistent growth for years, Skyline Corporation (Skyline) reported a major loss of earnings at the end of 1972. Skyline’s stock prices fell nearly 30 percent. Shareholder Marcia Freeman (plaintiff) sued Skyline officials Arthur J. Decio, Dale Swikert, Samuel P. Mandell, and Ira J. Kaufman (defendants) for insider trading. Freeman alleged that Skyline’s financial statements for the May and August quarters were misleading. Further, Freeman claimed that the defendants sold or gave away $14 million in Skyline stock based on inside knowledge of the exaggerated earnings statements and the upcoming November quarter decline. After discovery, the parties moved for summary judgment. The district court concluded that no cause of action existed under Indiana law that would allow a derivative suit on behalf of a corporation to regain profits from insider trading, and summary judgment was granted in favor of the defendants. Freeman appealed to the United States Court of Appeals for the Seventh Circuit.
Rule of Law
Holding and Reasoning (Wood, 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 166,000 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.