Securities and Exchange Commission v. Texas Gulf Sulphur Co.
United States Court of Appeals for the Second Circuit
401 F.2d 833 (2d Cir. 1969)
Texas Gulf Sulphur Co. (TGS) began drilling on a site in Canada and found high mineral content. To keep the purchase price of the site low, TGS kept the results of the drilling quiet. When word of the high mineral content of the site started to get out, TGS released a statement saying that the reports were exaggerated and that reports of the content of the site were inconclusive. Between that statement and TGS’s official announcement of the discovered copper ore four days later, the TGS secretary, a TGS director, and a TGS engineer (defendants) all bought TGS stock. The SEC started an investigation and eventually brought suit. The trial court found in favor of the defendants. The SEC appealed.
Rule of Law
Holding and Reasoning (Waterman, 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 170,000 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.