Day Trading Grandpa Loses Microbot Short Swing Harm Appeal (1)

A Microbot Medical Inc.-investing octogenarian who bought and sold the company’s securities within a six-month period while owning more than 10% of its stock must disgorge his profits to the company, the Second Circuit ruled Wednesday.

The decision reiterates a June 2024 holding by the influential appeals court that so-called short-swing trading by a 10% owner causes injury to the stock issuer that is sufficient to confer constitutional standing to sue. The court’s “well-reasoned precedents” on standing compel the result, the US Court of Appeals for the Second Circuit said in an unsigned, unpublished opinion about a week after ...