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Thursday, June 01, 2023 1:50:21 PM
Based on these principles, the Second Circuit concluded that Chow, by virtue of the NDAs he had entered into with the target company, became a temporary insider of the company and thus was obligated to keep any MNPI he obtained confidential. The Second Circuit further found that there was sufficient evidence to show that Chow had breached that duty by disclosing information about the impending acquisition to Yin. [5]
Standard NDAs Can Impose an Obligation Not to Trade
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