Re: Insider Trading: New California Emergency Regulation Permits Trading
Plans under SEC Rule 10b5-1(c)
Attached is a memorandum, dated March 23, 2001,
from Sullivan & Cromwell concerning the above subject. A summary is also
included at the end of the text of this e-mail message.
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York, telephone 212-558-3448, e-mail: Morenoi@sullcrom.com.
SUMMARY
On March 14, 2001, an emergency regulation became
effective that clarifies that sales plans and repurchase programs under SEC
Rule 10b5-1 also provide an affirmative defense to insider trading liability
under California law. The emergency regulation will be effective for a
period of 120 days. At that time, the emergency regulation will lapse
unless the Commissioner of Corporations takes appropriate action to adopt a
permanent regulation or the emergency regulation is readopted.
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