Fed. Sec. L. Rep. P 95,891 Candido Garcia Theresa Ruiz, Special Administrator of the Estate of Fedelina Munoz Adela Baros v. Gil E. Cordova

TACHA, Circuit Judge.

This case, involving a securities fraud claim, requires us to decide whether the purchase of stock by a corporate insider triggered a duty under Rule 10b-5(b) requiring him to disclose to the selling shareholders certain inside information regarding corporate asset appraisals. The district court allowed the securities fraud claim to reach the jury, implying that the defendant had a duty to disclose. Because we find the asset appraisal information here to be immaterial as a matter of law due to its speculative and unreliable nature, we hold that the defendant had no duty…