This section contains the nature of the case and procedural background.

Shareholders brought a class action suit against Liggett (D) for wrongful tipping of inside information about an earnings decline to certain persons who then sold D's shares on the open market. The district court looked to the measure of damages used in cases when a buyer was induced to purchase a company's stock by materially misleading statements or omissions; this was the out of pocket measure of damages.

The legal issues presented in this case will be displayed here.

The court's holding and decision will be displayed here.

Legal analysis from Dean's Law Dictionary will be displayed here.