On Francis Pileggi's, Kevin Brady has an informative post discussing Kahn v. Kolberg Kravis Roberts & Co., L.P. (a copy of the opinion is available here).
As Brady tees up the problem, "the issue before the Court was whether a stockholder had to show that the company had suffered actual harm before bringing a breach of loyalty claim that a fiduciary improperly used the company’s material, non-public information (a Brophy claim)." The court answered that question in the negative.
Those interested in insider trading at state law and duty oy loyalty issues should read Brady's post. they should also read my post on the case, which digs into the policy issues a bit.
