Blau v. Lehman

Mr. Justice Douglas, with whom The Chief Justice concurs,

dissenting.

What the Court does today is substantially to eliminate “the great Wall Street trading firms” from the operation of § 16 (b), as Judge Clark stated in his dissent in the Court of Appeals. 286 F. 2d 786, 799. This result follows because of the wide dispersion of partners of investment banking firms among our major corporations. Lehman Bros, has partners on 100 boards. Under today’s *415ruling that firm can make a rich harvest on the “inside information” which § 16 of the Act covers because each partner need account only for his…