Freeman v. Decio case brief

Freeman v. Decio case brief summary
584 F.2d 186 (1978)

CASE SYNOPSIS

Plaintiff appealed an order of the United States District Court for the Northern District of Indiana granting defendants' motion for summary judgment in an action involving the sale of securities.

CASE FACTS
Plaintiff stockholder filed suit against defendant chairman of the board, defendant president of the corporation, and defendant directors of the corporation in which she held stock, alleging that defendants sold the corporation's stock on the basis of material inside information during two distinct periods. The trial court granted summary judgment in favor of defendants.

DISCUSSION

• On appeal, the court held that in light of defendants' affidavits and documentary evidence, plaintiff failed to create a genuine dispute as to whether the defendants' sales of stock were based on inside information. 
• Alternatively, the court held that the plaintiff had failed to state a cause of action in that Indiana law had never recognized a right in a corporation to recover profits from insider trading.

CONCLUSION
Order granting defendants' motions for summary judgment affirmed because, in light of the evidence presented by defendants, plaintiff was unable to create a genuine dispute as to whether defendants' sales of stock were based on inside information.


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