M & A Law Prof Blog

Editor: Brian JM Quinn
Boston College Law School

Thursday, December 9, 2010

Blue Horseshoe loves Anacot Steel

Please.   If you are going to engage in insider trading, don't quote Wall Street in your coded e-mails.  I mean, everybody has seen that movie.  It's pathetic.  The SEC saw through that ruse and charged a couple of fraternity brothers (complaint).  The frat brothers allegedly tipped and then traded on inside information ahead of Sequenom's acquisition of Exact Sciences in January 2009:  

The SEC alleges that the patent agent tipped material, non-public information about the EXAS transaction to his brother, who relayed it to his fraternity brother Cohen. For example, the patent agent's brother sent Cohen an e-mail asking, "[a]ny word related to Blu H@rsesh0e? La Jolla says the times are ripe." The movie Wall Street uses the phrase, "Blue Horseshoe loves Anacot Steel," as a code for insider trading. "La Jolla" references the fact that the patent agent lived and worked near La Jolla, Calif.

Over at Fortune there is a short insider-trading quiz that everyone should take.  Stop what you're doing and take it.  Consider it continuing legal education. (h/t Deal Journal)  



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