Types of information:
(1) Insider information involves nonpublic information related to a public company.
(2) Material information is that which would cause a reasonable investor to make an investment decision.
Insider information for a clinical study may include:
(1) research data
(2) results of clinical trials
(3) reports of adverse effects
(4) manuscripts of papers or abstracts
(5) communications
A legal violation occurs if a person discloses insider information in violation of a duty of trust or confidence. The duty of confidence is a part of the confidentiality agreement entered into by the healthcare provider. A moral breach of duty may occur even if a legal violation has not occurred.
Material insider information:
(1) may be used by the insider
(2) given to a family member or relative
(3) given to a friend or acquaintance
Actions that may be taken as a result of insider information:
(1) purchase of a company's stock (if news is positive)
(2) sale or shorting of a company's stock (if news is negative)
