Schick v. Steiger

MEMORANDUM OPINION

RALPH M. FREEMAN, Senior District Judge.

This motion for summary judgment, brought by the defendant, raises an important issue in the area of securities regulation. The question is whether a person who gives misleading information to investors may assert the defense of in pari delicto in an action for fraud brought by the investors because the investors believed they were receiving material nonpublic information and traded upon such information without disclosure.

The facts, as adduced from the pleadings, need be stated only generally for purposes of this motion. Plaintiffs…