Litton Industries Inc. v. Lehman Brothers Kuhn Loeb, Inc.

967 F.2d 742 (2nd Cir. 1992)

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Nature of the Case

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Facts

Apparently, Litton (P) had plans to take over Itek. It was a friendly takeover, but Lehman (D) leaked plans of P's confidential strategy, and the tippees drove up the price of Itek stock. P then sued D, and the issue was damages; did the leaking of the information cause the Itek board to get a higher price for its stock than without the information that was leaked into the public marketplace driving up the stock price? The lower court dismissed the claim as there was no genuine material issue of fact as to whether Itek would have accepted a lower offer if not for an artificially inflated market price for its stock. P appealed.