SEC v. Texas Gulf Sulphur Co.

SEC v. Texas Gulf Sulphur Co. (1968) was a landmark case where the Securities and Exchange Commission (SEC) accused Texas Gulf Sulphur of insider trading. Company insiders had learned about a significant mineral discovery and, before public announcement, bought stock to profit from the information. The court ruled that insiders have a duty to disclose or abstain from trading based on material, non-public information. This case established key legal standards for insider trading, emphasizing that using confidential company information for personal gain breaches fiduciary duties and violates securities laws.