SmartBrief
Confirm favorite deletion?
Securities Regulation, Keyed to Choi
Securities and Exchange Commission v. Rocklage
Citation:
470 F.3d 1 (2006)Facts
Patricia Rocklage was married to Scott Rocklage, Chairman and CEO of Cubist Pharmaceuticals, a publicly-traded biotechnology company. On December 31, 2001, Mr. Rocklage learned that one of Cubist’s key drugs had failed its clinical trial. He called his wife to discuss the results, instructing her to keep the information confidential, which she agreed to do. Based on their history of sharing confidential information that she had always kept private, Mr. Rocklage reasonably expected confidentiality. However, unbeknownst to her husband, Mrs. Rocklage had a preexisting agreement with her brother, William Beaver, to tip him with “a wink and a nod” if she learned significant negative news about Cubist. She knew her brother owned Cubist stock and would trade on such information. After obtaining the information through this deception, Mrs. Rocklage told her husband on the evening of December 31 that she planned to signal her brother to sell his stock. Mr. Rocklage urged her not to do so, but she tipped her brother anyway. Beaver sold all 5,583 shares on January 2, 2002, and also tipped his friend David Jones, who sold 7,500 shares on January 3, 2002. When Cubist publicly announced the negative results on January 16, 2002, Beaver and Jones had avoided losses of $99,527 and $133,222, respectively.
Only StudyBuddy Pro offers the complete Case Brief Anatomy*
Access the most important case brief elements for optimal case understanding.
*Case Brief Anatomy includes: Brief Prologue, Complete Case Brief, Brief Epilogue
- The Brief Prologue provides necessary case brief introductory information and includes:
Topic:
Identifies the topic of law and where this case fits within your course outline.Parties:
Identifies the cast of characters involved in the case.Procedural Posture & History:
Shares the case history with how lower courts have ruled on the matter.Case Key Terms, Acts, Doctrines, etc.:
A case specific Legal Term Dictionary.Case Doctrines, Acts, Statutes, Amendments and Treatises:
Identifies and Defines Legal Authority used in this case.
- The Case Brief is the complete case summarized and authored in the traditional Law School I.R.A.C. format. The Pro case brief includes:
Brief Facts:
A Synopsis of the Facts of the case.Rule of Law:
Identifies the Legal Principle the Court used in deciding the case.Facts:
What are the factual circumstances that gave rise to the civil or criminal case? What is the relationship of the Parties that are involved in the case.Issue(s):
Lists the Questions of Law that are raised by the Facts of the case.Holding:
Shares the Court's answer to the legal questions raised in the issue.Concurring / Dissenting Opinions:
Includes valuable concurring or dissenting opinions and their key points.Reasoning and Analysis:
Identifies the chain of argument(s) which led the judges to rule as they did.
- The Brief Prologue closes the case brief with important forward-looking discussion and includes:
Policy:
Identifies the Policy if any that has been established by the case.Court Direction:
Shares where the Court went from here for this case.