The Delaware Supreme Court declined Friday to expand insider trading liability, affirming a lower court’s ruling that found a hedge fund wasn’t automatically acting as a fiduciary simply by appointing a board representative.
A one-page order signed by Justice Gary F. Traynor didn’t elaborate on the decision to uphold the Delaware Chancery Court.
An investor argued March 11 that Armistice Capital LLC owed a fiduciary duty to its shareholders because its appointment of its chief investment officer to the board of Aytu BioPharma Inc. created “a relationship of trust and confidence.” Armistice improperly profited from insider information obtained by its ...
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