Millions of dollars are recovered annually under a federal law that prohibits corporate insiders from profiting from short-term trading in the securities of the companies they control. Unfortunately, courts and attorneys have found it difficult to apply accurate methods for calculating liability under this law, which utilize modern algorithms for solving linear programming problems. Instead, they have relied on a simpler but sometimes inaccurate greedy algorithm devised by a judge in the 1940s. As a result, one plaintiff recently demanded and received $29,889.05 under this law, when an accurate calculation of the insider’s liability would have yielded $35,366.40.
Full enforcement of the insider trading laws benefits the public interest by improving confidence in the fairness and efficiency of the stock market. It would be immediately helpful in this regard to develop specific tools for calculating accurate insider trading liability that can be readily accessed and used by the interested public (including attorneys, judges, corporate officers and directors, investors, and their legal and financial advisers).
Creating an easy-to-use web calculator to determine Section 16(b) insider trading liability more accurately than currently used algorithms.
All team members will write documents together. However, the Editor has ownership of this website.
David Adler : Chief Developer
Tim Kang : Client Manager
Kevin Valakuzhy : Editor, Project Manager
Class Meetings : Mon, Wed, 9:30 - 10:45 AM
Professor Meetings : Wed, 12:30 - 1:30 PM
Client Meetings : Fri, 3:45 - 4:45 PM
Team Meetings : Tue, 5:30 - 7:00 PM, Sunday 10:00 - Till End