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Quotation from Dirks v. SEC by Supreme Court of the United States
“Thus, the test is whether the insider personally will benefit, directly or indirectly, from his disclosure. Absent some personal gain, there has been no breach of duty to stockholders. And absent a breach by the insider, there is no derivative breach.”
Dirks v. SEC, Opinion of the Court (Justice Powell), Part III–C (U.S. Reports text (Legal Information Institute))
Justice Powell states the personal-benefit test for tippee liability.
Citation: "Thus, the test is whether the insider personally will benefit, directly or indirectly, from his disclosure. Absent some personal gain, there has been no breach of duty to stockholders. And absent a breach by the insider, there is no derivative breach." — Supreme Court of the United States, Dirks v. SEC, Opinion of the Court (Justice Powell), Part III–C (U.S. Reports text (Legal Information Institute)). (id dirks-v-sec-q1)
Portrait: US Supreme Court Justice Lewis Powell - 1976 official portrait, Color negative by Robert S. Oakes, Public domain.
