Abraham, Fruchter, & Twersky LLP

Abraham, & Fruchter, Twersky, LLP

Insider Trading

AF&T is highly experienced in prosecuting violations of Section 16(b) of the Securities and Exchange Act of 1934 and other state laws related to corporate insider trading. Under Section 16(b) for example, certain corporate insiders and large shareholders are prohibited from engaging in “short-swing trading,” which is the buying and selling of their own company’s stock over short periods of time. If an insider violates these trading prohibitions, they are required by law to disgorge any profits and return the money to the corporation. Any company shareholder may sue on behalf of the corporation to compel the insider to do so.

AF&T attorneys are at the forefront of preventing insider trading and prosecuting insider trading actions. In recognition of AF&T’s accomplishments in this area, the SEC has consulted AF&T attorneys in regard to proposed changes and interpretations of regulations designed to further protect shareholders from improper insider trading.

If you are aware of improper insider trading, or would like more information about insider trading regulations or about pending cases involving improper insider trading, please contact us at 1-800-440-8986, (212) 279-5050 or fraud@aftlaw.com