Opinion ID: 333764
Heading Depth: 1
Heading Rank: 4

Heading: Geon--Corporate Responsibility for Officers' Violations

Text: 33 Geon concedes its responsibility for any breach of Rule 10b--5 by Neuwirth with respect to Rauch or, if we should find this, by Bloom, since these were acts by high officers within the scope of their duties. It does deny responsibility for Neuwirth's communications with Alpert, on the ground that these were not within the scope of his office. The SEC responds that any tipping by the chief executive officer of a corporation is necessarily in his official capacity. Although we tend to agree with the SEC, it is unnecessary for us to decide the point in light of our holdings in Part III that Neuwirth violated Rule 10b--5 by talks with Rauch and our holding in Part V with respect to violations by Bloom. 10 Geon also raised no question that, if it was properly held to have violated Rule 10b--5, an injunction in the form issued by the district court was authorized. 34