From our private database of 14,100+ case briefs...
In the Matter of Cady, Roberts & Co.
United States Securities and Exchange Commission
40 S.E.C. 907 (1961)
Robert Gintel (defendant) was a broker of Cady, Roberts & Co. (registrant) (defendant). J. Cheever Cowdin was a representative of the registrant and a director of Curtiss-Wright Corporation (Curtiss-Wright). Curtiss-Wright announced a new engine development plan. Gintel bought Curtiss-Wright stock for his customers. Later, the Curtiss-Wright directors, including Cowdin, met to discuss a quarterly dividend and finally approved a dividend cut. Due to some technical problems, the dividend news was not communicated to the New York Stock Exchange (Exchange) immediately. Before it became public, Gintel learned about the dividend cut through a phone call from Cowdin. Gintel placed two sales of Curtiss-Wright stock to protect his clients. The Exchange suspended trading in Curtiss-Wright after the dividend news came out. The Securities and Exchange Commission (SEC) launched this proceeding against the defendants, alleging fraud. The defendants argued that they did not expressly make false representations or otherwise manipulate the market. Gintel was fined by the Exchange. The defendants offered a settlement under which Gintel would be suspended from the Exchange for 20 days.
Rule of Law
Holding and Reasoning (Cray)
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 219,000 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.