Insider Trading Suit Between Shareholders Heads to Jury Trial

Oaktree Specialty Lending Corp. shareholders are entitled to take their insider trading suit against a fellow shareholder to trial, despite testimony that he never received any insider information, a federal court said.

OCSL shareholders Dennis Donoghue and Mark Rubenstein sued OCSL and Leonard M. Tannenbaum under Section 16(b) of the 1934 Securities Exchange Act to recover the $1.08 million Tannenbaum made in short-swing profits shortly after OCSL merged with Oaktree Strategic Income Corp. Judge Paul A. Engelmayer, of the US District Court for the Southern District of New York, originally granted Tannenbaum summary judgment, saying that there was no material ...