Facts
Curtiss-Wright approved a dividend for the 4th quarter and authorized transmission of this to the NYSE. There was a delay in the transmission and was not reported until 1.5 hours later. After the meeting, Gintel was informed and he entered two sell orders, prior to the transmission and after the transmission NYSE had to suspend trading because of the number of sell orders.
Reasoning/Analysis
The Court found that we and the courts have consistently held that insiders must disclose material facts which are known to them but which are not known to persons whom they deal with. Consequently, any sales by the insider must await disclosure of the information.
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