GIBBONS v. MALONE

Docket No. 11-3620-cv.

703 F.3d 595 (2013)

Michael D. GIBBONS, Plaintiff-Appellant, v. John C. MALONE, Defendant-Appellee, and Discovery Communications, Inc., Nominal Defendant-Appellee.

United States Court of Appeals, Second Circuit.

Decided: January 7, 2013.


Attorney(s) appearing for the Case

Daniel E. Doherty ( Charles J. Hyland , on the brief), Law Offices of Daniel E. Doherty, Overland Park, KS, for Plaintiff-Appellant Michael D. Gibbons.

Alexandra M. Walsh ( Seth T. Taube and Melissa Armstrong , on the brief), Baker Botts L.L.P., Washington, DC, and New York, NY, for Defendant-Appellee John C. Malone.

John F. Batter III ( Nolan J. Mitchell , on the brief), Wilmer Cutler Pickering Hale and Dorr, Boston, MA, for Nominal Defendant-Appellee Discovery Communications, Inc.

Before: LEVAL, CABRANES, and KATZMANN, Circuit Judges.


JOSÉ A. CABRANES, Circuit Judge:

Section 16(b) of the Securities Exchange Act of 1934 (the "1934 Act") provides for the disgorgement of profits that corporate insiders1 realize "from any purchase and sale, or any sale and purchase, of any equity security of [the corporate] issuer... within any period of less than six months." 15 U.S.C. § 78p(b). The question presented is whether this so-called "short-swing profit rule" applies...

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