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Pepper Hamilton Client Alert: Rule 10b5-1 Stock Trading Plans Are Not Bulletproof

Client Alert: December 17, 2012

Jay A. Dubow | dubowj[at]

Many corporate executives rely on Rule 10b5-1 plans to buy or sell shares of their company’s stock without having to worry about violating insider trading laws, even when the trades take place when the executive possesses material nonpublic information about his or her company. However, recent Wall Street Journal articles have described civil and criminal investigations into possible misuse of Rule 10b5-1 plans by executives at a number of companies.

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