R v Rivkin

In the case of R v Rivkin, the respondent was charged with insider trading following his acquisition of shares in a company based on information obtained from a director of that company. The shares were acquired when the information was not generally available to the public. The matter was brought before the High Court of Australia, which was required to determine whether the information in question was "price sensitive information" and whether it was "generally available".

The central legal issue before the Court was whether the information obtained by the respondent constituted "price sensitive information" under the Corporations Act 2001 (Cth). Furthermore, the Court had to determine whether the information was "generally available" to the public at the time of the acquisition of the shares. The Court was required to balance the need to protect the integrity of the market with the right of individuals to trade in securities based on their own knowledge and information.

The Court held that the information obtained by the respondent was indeed "price sensitive information" as it had the potential to affect the price of the company's securities. However, the Court also found that the information was "generally available" to the public as it was contained in an annual report that was accessible to the public. The Court concluded that the respondent's acquisition of the shares did not constitute insider trading as the information was not price sensitive when it became generally available. The conviction was quashed, and the appeal was allowed.

The Court's decision in R v Rivkin highlights the importance of determining whether information is both "price sensitive" and not "generally available" in insider trading cases. The Court's ruling provides guidance to individuals and companies on the boundaries of permissible trading activities and the potential consequences of engaging in insider trading.