“[In insider trading cases,] you connect the dots not by simply going from one dot to another but by starting at both dots and working toward the middle, ... The facts that are public don't come close to demonstrating wrongdoing. It's way too premature to have any judgment.”
“The mere fact that someone says, 'we're optimistic' and then a month later the stock price goes down doesn't mean that people have tried to mislead anybody else, ... If you purport to tell people what you know about the future but you mislead them by leaving important things out, that can well be the sin of omission. But you have to look at what, precisely, people say and what, precisely, is left out.”
“You worry about small investors getting involved through the back door in investments that aren't suitable for them because they're too risky or the fees are too high. NASD requires brokers to have a reasonable basis for recommending an investment, as a counterforce to the overwhelming economic incentives for salesmen to sell.”
