Logourl black
From our private database of 14,100+ case briefs...

Securities and Exchange Commission v. Sargent

United States Court of Appeals for the First Circuit
329 F.3d 34 (2003)


Facts

Dennis Shepard (defendant) learned that Mark IV Industries, Inc. had issued a tender offer to acquire Purolator Products (Purolator), a publicly held company. The tender offer was not public information and Shepard agreed to keep it confidential. Instead, Shepard informed his friend Michael Sargent (defendant) of the tender offer. Shepard was the president of a webcasting company and did not have a high net worth. Sargent, who was a dentist and had a relatively high net worth, purchased 20,400 shares of Purolator after his conversation with Shepard. He then sold the shares after the public announcement of the tender offer, making a profit of $141,768. The Securities and Exchange Commission (SEC) (plaintiff) brought a civil enforcement action against Shepard and Sargent. The SEC sought disgorgement of the profits Sargent had obtained, an injunction preventing future violations of securities law, prejudgment interest on the disgorgement amount, and civil penalties. The district court found Shepard and Sargent jointly and severally liable for disgorgement of Sargent’s profits but denied injunctive relief and civil penalties. The SEC appealed.

Rule of Law

The rule of law is the black letter law upon which the court rested its decision.

To access this section, please start your free trial or log in.

Issue

The issue section includes the dispositive legal issue in the case phrased as a question.

To access this section, please start your free trial or log in.

Holding and Reasoning (Torruella, J.)

The holding and reasoning section includes:

  • A "yes" or "no" answer to the question framed in the issue section;
  • A summary of the majority or plurality opinion, using the CREAC method; and
  • The procedural disposition (e.g. reversed and remanded, affirmed, etc.).

To access this section, please start your free trial or log in.

What to do next…

  1. 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.

  2. 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 221,000 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.