Fed. Sec. L. Rep. P 96,310 Merrill Lynch, Pierce, Fenner & Smith, Inc. v. William G. Livingston

HUFSTEDLER, Circuit Judge:

Merrill Lynch, Pierce, Fenner & Smith, Inc. (“Merrill Lynch”) obtained judgment against its employée Livingston requiring him to pay Merrill Lynch $14,836.37 which was the profit that he made on short-swing transactions in the securities of his employer in alleged violation of Section 16(b) of the Securities Exchange Act of 1934 (15 U.S.C. § 78p (1971)). We reverse because Livingston was not an officer with access to inside information within the purview of Section 16(b) of the Securities Exchange Act of 1934.

From 1951 to 1972, Livingston was employed by Merrill…