Tag: Trading Plans

Is New Insider Trading Plan An Inroad Or Off-Ramp?

By letter to the Securities and Exchange Commission (“SEC”) Chair dated December 28, 2012, the Council of Institutional Investors (”CII”) raised its concerns about the potential misuse of trading plans that are intended to satisfy the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934. CII noted that the timing of the adoption of some new trading plans…

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Eighth Circuit Holds that Rule 10b5-1 Trading Plan Helps Rebut Allegations of Scienter

On Thursday, the Eighth Circuit affirmed the dismissal of the securities class action against Centene and certain executives.  Plaintiffs alleged, among other things, that a strong inference of scienter was demonstrated by two executives’ stock sales in April 2006.  The lower court rejected this theory and the Eighth Circuit affirmed, holding that the sale of this stock under Rule 10b5-1…

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The Rule 10b5-1 Buying Plan Challenge

by Bruce Carton We previously discussed the rare bird that is Randy Repass’ “Rule 10b5-1 Buying Plan” in this article but inquiring minds want to know:  Just how rare is it? In my new “Enforcement Action” blog over at Compliance Week, I pose that question with the hope of getting some feedback from other executives and lawyers who have set…

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