When corporate officers are apprised of possible 16(b) liability on the part of a fellow insider, an appropriate reaction by them encompasses both practical and legal considerations. In this comment non-legal factors influencing managerial judgments are related to precepts applied by courts in resolution of 16(b) claims. A detailed investigation is made into the status of the common law Business Judgment Rule in the context of insider trading.
Insider Trading: The Issuer’s Disposition of an Alleged 16 (b) Violation,
1968 Duke Law Journal
Available at: http://scholarship.law.duke.edu/dlj/vol17/iss1/5