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This entry was published on 2014-09-22
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Fraudulent, deceptive or manipulative practices
Business Corporation (BSC) CHAPTER 4, ARTICLE 16
§ 1609. Fraudulent, deceptive or manipulative practices.

(a) No person shall make any untrue statement of a material fact or
omit to state any material fact necessary in order to make the
statements made, in the light of the circumstances under which they are
made, not misleading, or engage in any fraudulent, deceptive, or
manipulative acts or practices, in connection with any takeover bid or
any solicitation of offerees in opposition to or in favor of any such
takeover bid.

(b) It shall constitute a violation of this article for any person who
is in possession of material information relating to any takeover bid,
which information he knows or has reason to know is nonpublic, which he
acquired either before or after the commencement of the takeover bid,
and which he knows or has reason to know has been acquired directly or
indirectly from an offeror, a target company, or any officer, director,
partner or employee or any other person acting on behalf of the offeror
or target company, to purchase or sell or cause to be purchased or sold,
within or from this state, any securities sought or to be sought by such
takeover bid or any securities convertible into or exhangeable for any
such securities or any option or right to obtain or to dispose of any
such securities.

(c) Fraudulent, deceptive or manipulative acts or practices include
without limitation those acts and practices proscribed by rules and
regulations which the attorney general is hereby empowered to adopt,
promulgate, amend and rescind as is necessary to carry out the
provisions of this section.