BARCLAYS CAPITAL INC. v. THEFLYONTHEWALL.COM, INC.

Docket No. 10-1372-cv.

650 F.3d 876 (2011)

BARCLAYS CAPITAL INC., Merrill Lynch, Pierce, Fenner & Smith Inc., and Morgan Stanley & Co. Inc., Plaintiffs-Appellees, v. THEFLYONTHEWALL.COM, INC., Defendant-Appellant.

United States Court of Appeals, Second Circuit.

Decided: June 20, 2011.


Attorney(s) appearing for the Case

Glenn F. Ostrager , Ostrager Chong Flaherty & Broitman P.C. ( Joshua S. Broitman , of counsel), New York, NY, for Appellant.

R. Bruce Rich , Weil Gotshal & Manges LLP ( Benjamin Marks , Jonathan Bloom , and Lisa R. Eskow , of counsel), New York, NY, for Appellees.

Kathleen M. Sullivan , Quinn Emanuel Urquhart & Sullivan, LLP ( Marc L. Greenwald , Jonathan B. Oblak , and Todd Anten , of counsel), New York, NY, for Amici Curiae Google Inc. and Twitter, Inc.

Andrew L. Deutsch , DLA Piper LLP (US) ( Nicholas Aldrich , of counsel), New York, NY, for Amici Curiae Advance Publications, Inc., Agence France-Presse, A.H. Belo Corporation, The Associated Press, Belo Corp., The E.W. Scripps Company, Gannett Company, Inc., The McClatchy Company, Newspaper Association of America, The New York Times Company, Philadelphia Media Holdings, LLC, Stephens Media LLC, Time Inc., and the Washington Post.

Stephen Kinnaird , Paul, Hastings, Janofsky & Walker LLP ( Barry Sher , William F. Sullivan , Peter M. Stone , and Morgan J. Miller , of counsel), Washington, DC, for Amicus Curiae The Securities Industry and Financial Markets Association.

Christopher A. Mohr , Meyer, Klipper & Mohr, PLLC, Washington, DC, for Amicus Curiae Reed Elsevier Inc.

Robert P. LoBue , Patterson Belknap Webb & Tyler LLP, New York, NY, for Amicus Curiae Dow Jones & Company, Inc.

William D. Edick , Pickard & Djinis LLP, Washington, DC, for Amicus Curiae The Investorside Research Association.

Henry R. Kaufman , Henry R. Kaufman, P.C. ( Michael K. Cantwell , of counsel), New York, NY, for Amicus Curiae StreetAccount LLC.

Fred Von Lohmann ( Corynne McSherry , of counsel), San Francisco, CA, for Amici Curiae Citizen Media Law Project, Electronic Frontier Foundation, and Public Citizen, Inc.

Before: POOLER, SACK, and RAGGI, Circuit Judges.


SACK, Circuit Judge:

The parties, the district court, and amici have raised a wide variety of interesting legal and policy issues during the course of this litigation. We need not address most of them. We conclude that under principles that are well established in this Circuit, the plaintiffs' claim against the defendant for "hot news" misappropriation of the plaintiff financial firms' recommendations to clients and prospective clients as to trading in corporate securities...

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