Tuck,
Short-swing profits are usually an open-and-shut case. The only issue here will likely be if the Sacane Group denies it was always a group - it will be a factual issue unless their recent filing (in which they admit to being a group) makes that defense moot. Still up for discussion in any event would be exactly when they became a group.
The actual calculation of the profit can be tricky - my distant recollection is that there are different ways to match the buys and sells that might produce different net profit - but the general method is to match them so as to maximize the total (assumed) profits.
Here's the statute:
For the purpose of preventing the unfair use of information which may have been obtained by such beneficial owner, director, or officer by reason of his relationship to the issuer, any profit realized by him from any purchase and sale, or any sale and purchase, of any equity security of such issuer (other than an exempted security) within any period of less than six months, unless such security was acquired in good faith in connection with a debt previously contracted, shall inure to and be recoverable by the issuer, irrespective of any intention on the part of such beneficial owner, director, or officer in entering into such transaction of holding the security purchased or of not repurchasing the security sold for a period exceeding six months.
Peter
P.S. I've been adding to my ESPR (and AKSY) during this dip. Now even above water on ESPR on my first, too-hasty purchase after the Sacane news came out. My initial AKSY purchase is still under water though. |
