9323 stated: Section 10(b) of the Act (see footnote 8, supra) was taken by the Conference Committee from Section 10(b) of the proposed Senate bill, S. 3420, and taken from it verbatim insofar as here pertinent. The final question to be answered is: were these officers and employees disqualified as the result of possessing information gleaned by the first drill core from purchasing TGS stock? 21 (S.D.N.Y. Securities Act Interpretation Release No. On April 16, the day of the official announcement of the Timmins discovery, the price climbed to a high of 37 and closed at 36 3/8. However, the "facts" disclosed relative to the Kidd-55 segment were: "Recent drilling on one property near Timmins has led to preliminary indications that more drilling would be required for proper evaluation of this prospect. For reasons which appear below, we decide the various issues presented as follows: (1) As to Clayton and Crawford, as purchasers of stock on April 15 and 16, 1964, we affirm the finding that they violated 15 U.S.C. 1340, 1370 (1967). The inconsistency of the majority's position is immediately apparent. No one has asserted, or reasonably could assert, that the purpose for issuing a release was anything but good. Texas Gulf Sulphur Co. 1967. The approach has led, in many cases, to doctrinal uncertainty, a result that is reflected in the recent . ), cert. See Stockwell v. Reynolds & Co., 252 F.Supp. 274 (S.D.N.Y. 1383, 73rd Cong., 2d Sess. This requirement, whether it be termed lack of diligence, constructive fraud, or unreasonable or negligent conduct, remains implicit in this standard, a standard that promotes the deterrence objective of the Rule. Law. Rule 52(a) should be given particular weight where expert testimony must of necessity play an important role. The market opened at 30 1/8 on the 13th (when the release became public) and closed at 30 7/8 scarcely a sign of public pessimism. Also by 7:00 A. M. on April 13, K-55-6 had found mineralization to the 946-foot mark. at 294, seems to have derived from its views that "The defendants are to be judged on the facts known to them when the April 12 release was issued," 258 F.Supp.