Chiarella v. United States
Citation
445 U.S. 222 (1980)
Facts
Stub — to be completed.
Issue
Stub — to be completed.
Holding
Stub — to be completed.
Rule
Mere possession of material nonpublic information does not create a duty to disclose under Rule 10b-5; a duty to disclose arises only from a relationship of trust and confidence (classical theory).
Significance
Established the classical theory of insider trading liability — duty must derive from a relationship with the issuer or its shareholders.