SEC Rule 10B5-1 prohibits:
the purchase or sale of a security of any issuer, on the basis of material nonpublic information about that security or issuer, in breach of a duty of trust or confidence that is owed directly, indirectly, or derivatively, to the issuer of that security or the shareholders of that issuer, or to any other person who is the source of the material nonpublic information.
but what if there is no "breach of a duty of trust"? Is there some other United States law, rule, or court ruling covering cases when one gains such information from the outside?
For example, consider some private Company A that is about to release a product that will likely lower the share price of some public Company B. Would an employee of Company A making trades (e.g. buying put options for Company B) based on this information be committing an illegal act?
A very similar question was asked here:
but it only considers the question in a very general sense and does not address regulations in the United States specifically. Are there any recent examples of the application of laws, rules, or court cases related to this scenario in the United States?
Assume for the sake of this question that there is no breach of trust being committed against the source of the material nonpublic information (Company A). If it helps, imagine that Company A is a sole proprietorship where the employee committing the trades is the company's only employee (and consequently also the head of the company) and that there are no outside investors or stake holders involved with Company A whose trust could be breached.