Critical Legal Thinking United States v. Bhagat – Cheeseman

Critical Legal Thinking
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Briefing Paper 1: Critical Legal Thinking United States v. Bhagat – Cheeseman
Insider trade in involve the trading of a financial security mostly stocks, breaching the fiduciary duty and trust with the intention of material gain, based on having access to confidential non public information. Tipping involves providing such information to another person who then misappropriates this information. Atul Bhagat was guilty of insider trading by informing by purchasing Nvidia and X box information before it was acquired by Microsoft together with a close associate, as Bhagat wanted to make a profit (Cheeseman, 2013). Bhagat made a large purchase of the Nvidia stock just prior to the acquisition, but he would be innocent if he proved his knowledge of the proposed merger and acquisition was in the public domain. The government likely prosecutes less than 20% of insider trading cases, because of collusion, secrecy, complexity and difficulty to prove these cases.
Briefing Paper 2: Law Case with Answers-
Securities and Exchange Commission v. Texas Gulf Sulphur Company (TGS)
Crawford and Coates Executives at TGS had prior information that the company had found deposits of minerals in Ontario, Canada, and decided to purchase the company’s stock before public announcement (Cheeseman, 2013). To determine whether Coates was guilty of insider trading, there is a need to look at the timing of the stock trade. Even though, there was a public announcement, Coates traded just before this information was made publicly. Additionally, he had already informed his son-in law who dealt in financial securities to purchase for him. Public information is that which is available to everyone especially through public announcement, and Coates would succeed to prove that there was no insider trading based on when he bought the shares of TGS.
Briefing Paper 3: Critical Legal Thinking Cases26.1 Act of State Doctrine- United States v. Belmont
Petroleum Metal Works a Russian corporation deposited money with August Belmont in New York, but the comply was nationalized, while both the U.S and Russia agreed that they would be no further claims to Belmont, but the later asked for the deposited money (Cheeseman). The Act of State Doctrine affects foreign policy and international business transactions. The courts refrain from determining questions that are determined by either the legislature or executive. The best case scenario is for the courts to rule in favor if U.S corporations and the courts are constrained in making judgmen...