| SEC v. Texas Gulf Sulphur Co. | |
|---|---|
 | |
| Court | United States Court of Appeals for the Second Circuit |
| Argued | March 20, 1967 |
| Decided | August 13, 1968 |
| Citation | 401 F.2d 833; 2 A.L.R. Fed. 190 |
| Case history | |
| Prior history | SEC v. Texas Gulf Sulphur Co., 258 F.Supp. 262 (S.D.N.Y. 1966) |
| Subsequent history | Coates v. SEC, 394 U.S. 976 (1969) (denying certiorari); Kline v. SEC, 394 U.S. 976 (1969) (denying certiorari) |
| Case opinions | |
| Majority | Waterman |
| Concurrence | Friendly |
| Concurrence | Kaufman |
| Concurrence | Anderson |
| Concur/dissent | Hays |
| Dissent | Moore, joined by Lumbard |
| Laws applied | |
| Section 10(b) of Securities Exchange Act; SEC Rule 10b-5 | |
SEC v. Texas Gulf Sulphur Co.[1] is a case from the United States Court of Appeals for the Second Circuit which articulated standards for a number of aspects of insider trading law under Section 10(b) of the Securities Exchange Act and SEC Rule 10b-5. In particular, it set out standards for materiality of inside information, effective disclosure of such information, and what constitutes a "misleading" statement. Texas Gulf Sulphur represented the first time a federal court held that insider trading violated federal securities law and remained the leading case on insider trading for a decade.[2] Over time, the U.S. Supreme Court embraced some of its holdings while rejecting others. The case continues to receive significant scholarly attention.
- ^ SEC v. Texas Gulf Sulphur Co., 401 F.2d 833 (1968) (en banc).
- ^ Fairfax, Lisa M. (2018). "From Equality to Duty: On Altering the Reach, Impact, and Meaning of the Texas Gulf Legacy". SMU Law Review. 71: 729–748.