Rule 10b5-1 Insider Trading Plans: Increased DOJ Emphasis Checklist

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Under Rule 10b5-1 of the Securities Exchange Act of 1934 (17 C.F.R. § 240.1b5-1) the plans allow a safe harbor for insiders to conduct transactions in their company's securities.

United States Criminal Law

Cadwalader partners Ken Breen and Phara Guberman and associate Elizabeth Gorman Shults authored an article, "Rule 10b5-1 Insider Trading Plans: Increased DOJ Emphasis Checklist," published by LexisNexis in its "Securities Litigation/Enforcement & White Collar Practical Guidance" series on August 23.

Under Rule 10b5-1 of the Securities Exchange Act of 1934 (17 C.F.R. § 240.1b5-1) the plans allow a safe harbor for insiders to conduct transactions in their company's securities. Ken, Phara and Elizabeth discuss the 10b5-1 Plans, recent developments in the prosecution by the Department of Justice (DOJ) of their misuse, and key takeaways from the government's new approach to suspected insider trading violations related to 10b5-1 Plans.

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