“Two out of Three Ain’t Bad is the title of one of rock band Meatloaf’s most famous songs. For most of us two out of three is probably a pretty good result. In major league baseball, in contrast, one out of three for a batter can be very good – a .333 batting average is far better than most. But what is the standard for insider trading? If the trader buys stock while in possession of inside information about a deal which later collapses but then profits from unforeseen events that have no relation to the inside information is that insider trading? If that happens two out of three times such that the trader fails the Meatloaf standard but not the major league baseball one should he be charged on one, two or three deals? According to the SEC and the Manhattan U.S. Attorney’s Office all three deals. SEC v. Maciocio, Civil Action No. 1:16-cv-04139 (S.D.N.Y. Filed June 3, 2016).
via When One Out of Three Equals Insider Trading Three Times — SEC Actions