Question

In United States v. O'Hagan, O'Hagan was charged under the misappropriation theory with insider trading due to a stock profit made directly attributable to his relationship with a firm representing the purchaser of a tender offer for another corporation's stock. The court concluded each of the following except:
A.Full disclosure negates liability under the misappropriation theory.
B.Using nonpublic information is a "deceptive device" per § 10(b)
C.One can be guilty under the misappropriation theory if they are a fiduciary or if not a fiduciary, they have been entrusted with access to confidential information.
D.O'Hagan would not be liable had he represented the target of the tender offer but is guilty because he represented the bidder.

Answer

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