Lund was the CEO of Verit Co Lund was contacted by Horowitz, the CEO and Chairman of the Board of P & F. Horowitz told Lund of an opportunity P & F had to buy into a Las Vegas casino. Lund immediately purchased 10,000 shares of P & F. Three days after
Lund's purchase, P & F announced its intentions to enter into a joint venture for a Las Vegas casino. Lund was then able to sell his shares for considerable profit. Discuss the propriety of Lund's actions under the 1934 Act.
Lund is a tippee. There is a 10(b) violation. SEC v. Lund, 570 F.Supp. 1397 (C.D.Cal.1983).
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