Question: 1 Is Bhagat liable as an insider even though he

1. Is Bhagat liable as an insider even though he was a relatively low-level employee? Why?
2. What role did Bhagat’s credibility play in this case?

NVIDIA, a publicly-held corporation that manufactured graphics processors and media communication devices located in Silicon Valley, employed Bhagat as an engineer. On Sunday, March 5, 2000, the chief executive officer of NVIDIA sent an e-mail to all company employees announcing that NVIDIA had entered into a contract with Microsoft to develop and manufacture 3-D graphics for Microsoft’s X-Box. The company subsequently gave specific instructions to keep the information confidential imposed a trading blackout. Bhagat purchased a large quantity of NVIDIA stock—his largest purchase in three years. After the news about NVIDIA’s contract with Microsoft was released, NVIDIA’s stock rose sharply and Bhagat reaped a substantial profit

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