US Code
CHAPTER 2B— SECURITIES EXCHANGES
§ 78t–1. Liability to contemporaneous traders for insider trading

(a) Private rights of action based on contemporaneous tradingAny person who violates any provision of this chapter or the rules or regulations thereunder by purchasing or selling a security while in possession of material, nonpublic information shall be liable in an action in any court of competent jurisdiction to any person who, contemporaneously with the purchase or sale of securities that is the subject of such violation, has purchased (where such violation is based on a sale of securities) or sold (where such violation is based on a purchase of securities) securities of the same class.
(b) Limitations on liability(1) Contemporaneous trading actions limited to profit gained or loss avoidedThe total amount of damages imposed under subsection (a) shall not exceed the profit gained or loss avoided in the transaction or transactions that are the subject of the violation.
(2) Offsetting disgorgements against liabilityThe total amount of damages imposed against any person under subsection (a) shall be diminished by the amounts, if any, that such person may be required to disgorge, pursuant to a court order obtained at the instance of the Commission, in a proceeding brought under section 78u(d) of this title relating to the same transaction or transactions.
(3) Controlling person liabilityNo person shall be liable under this section solely by reason of employing another person who is liable under this section, but the liability of a controlling person under this section shall be subject to section 78t(a) of this title.
(4) Statute of limitationsNo action may be brought under this section more than 5 years after the date of the last transaction that is the subject of the violation.
(c) Joint and several liability for communicatingAny person who violates any provision of this chapter or the rules or regulations thereunder by communicating material, nonpublic information shall be jointly and severally liable under subsection (a) with, and to the same extent as, any person or persons liable under subsection (a) to whom the communication was directed.
(d) Authority not to restrict other express or implied rights of actionNothing in this section shall be construed to limit or condition the right of any person to bring an action to enforce a requirement of this chapter or the availability of any cause of action implied from a provision of this chapter.
(e) Provisions not to affect public prosecutionsThis section shall not be construed to bar or limit in any manner any action by the Commission or the Attorney General under any other provision of this chapter, nor shall it bar or limit in any manner any action to recover penalties, or to seek any other order regarding penalties.

Structure US Code

US Code

Title 15— COMMERCE AND TRADE

CHAPTER 2B— SECURITIES EXCHANGES

§ 78a. Short title

§ 78b. Necessity for regulation

§ 78c. Definitions and application

§ 78c–1. Swap agreements

§ 78c–2. Securities-related derivatives

§ 78c–3. Clearing for security-based swaps

§ 78c–4. Security-based swap execution facilities

§ 78c–5. Segregation of assets held as collateral in security-based swap transactions

§ 78d. Securities and Exchange Commission

§ 78d–1. Delegation of functions by Commission

§ 78d–2. Transfer of functions with respect to assignment of personnel to chairman

§ 78d–3. Appearance and practice before the Commission

§ 78d–4. Additional duties of Inspector General

§ 78d–5. Deadline for completing enforcement investigations and compliance examinations and inspections

§ 78d–6. Report and certification of internal supervisory controls

§ 78d–7. Triennial report on personnel management

§ 78d–8. Annual financial controls audit

§ 78d–9. Report on oversight of national securities associations

§ 78e. Transactions on unregistered exchanges

§ 78f. National securities exchanges

§ 78g. Margin requirements

§ 78h. Restrictions on borrowing and lending by members, brokers, and dealers

§ 78i. Manipulation of security prices

§ 78j. Manipulative and deceptive devices

§ 78j–1. Audit requirements

§ 78j–2. Position limits and position accountability for security-based swaps and large trader reporting

§ 78j–3. Compensation committees

§ 78j–4. Recovery of erroneously awarded compensation policy

§ 78k. Trading by members of exchanges, brokers, and dealers

§ 78k–1. National market system for securities; securities information processors

§ 78l. Registration requirements for securities

§ 78l–1. Applications for unlisted trading privileges deemed filed under

§ 78m. Periodical and other reports

§ 78m–1. Reporting and recordkeeping for certain security-based swaps

§ 78m–2. Reporting requirements regarding coal or other mine safety

§ 78n. Proxies

§ 78n–1. Shareholder approval of executive compensation

§ 78n–2. Corporate governance

§ 78o. Registration and regulation of brokers and dealers

§ 78o–1. Brokers deemed to be registered

§ 78o–2. Liabilities arising prior to amendment unaffected

§ 78o–3. Registered securities associations

§ 78o–4. Municipal securities

§ 78o–4a. Commission Office of Municipal Securities

§ 78o–5. Government securities brokers and dealers

§ 78o–6. Securities analysts and research reports

§ 78o–7. Registration of nationally recognized statistical rating organizations

§ 78o–8. Universal ratings symbols

§ 78o–9. Study and rulemaking on assigned credit ratings

§ 78o–10. Registration and regulation of security-based swap dealers and major security-based swap participants

§ 78o–11. Credit risk retention

§ 78p. Directors, officers, and principal stockholders

§ 78q. Records and reports

§ 78q–1. National system for clearance and settlement of securities transactions

§ 78q–2. Automated quotation systems for penny stocks

§ 78r. Liability for misleading statements

§ 78s. Registration, responsibilities, and oversight of self-regulatory organizations

§ 78t. Liability of controlling persons and persons who aid and abet violations

§ 78t–1. Liability to contemporaneous traders for insider trading

§ 78u. Investigations and actions

§ 78u–1. Civil penalties for insider trading

§ 78u–2. Civil remedies in administrative proceedings

§ 78u–3. Cease-and-desist proceedings

§ 78u–4. Private securities litigation

§ 78u–5. Application of safe harbor for forward-looking statements

§ 78u–6. Securities whistleblower incentives and protection

§ 78u–7. Implementation and transition provisions for whistleblower protection

§ 78v. Hearings by Commission

§ 78w. Rules, regulations, and orders; annual reports

§ 78x. Public availability of information

§ 78y. Court review of orders and rules

§ 78z. Unlawful representations

§ 78aa. Jurisdiction of offenses and suits

§ 78aa–1. Special provision relating to statute of limitations on private causes of action

§ 78bb. Effect on existing law

§ 78cc. Validity of contracts

§ 78dd. Foreign securities exchanges

§ 78dd–1. Prohibited foreign trade practices by issuers

§ 78dd–2. Prohibited foreign trade practices by domestic concerns

§ 78dd–3. Prohibited foreign trade practices by persons other than issuers or domestic concerns

§ 78ee. Transaction fees

§ 78ff. Penalties

§ 78gg. Separability

§ 78hh. Effective date

§ 78hh–1. Effective date of certain sections

§ 78ii. Omitted

§ 78jj. Repealed. , ,

§ 78kk. Authorization of appropriations

§ 78ll. Requirements for the EDGAR system

§ 78mm. General exemptive authority

§ 78nn. Tennessee Valley Authority

§ 78oo. Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, Federal Home Loan Banks

§ 78pp. Investor Advisory Committee

§ 78qq. Small Business Capital Formation Advisory Committee

§ 78rr. Data standards for security-based swap reporting