What did the Ninth Circuit describe as a “classical” insider trading case and why was the Talbot case not a classical insider trading case?

Review the excerpt of the Ninth Circuit Court of Appeals case SEC v. Talbot linked below.  Using the material in the textbook Chapter 42, discuss the following questions fully, identifying issues raised and applicable law.

1.  What did the Ninth Circuit describe as a “classical” insider trading case and why was the Talbot case not a classical insider trading case?

2.  How does the Ninth Circuit describe the “misappropriation” insider trading theory and what is required to establish liability under this theory?

3.  According to the Ninth Circuit, what facts established that Talbot had engaged in insider trading under the misappropriation theory?