In the case of Strong v. Repide, a shareholder in a mining company sued another shareholder for fraud after he sold his shares without disclosing non-public information about an upcoming stock dividend. The plaintiff argued that the defendant had breached his fiduciary duty by not sharing this insider information before selling his shares. However, the Supreme Court ruled against him, stating that there was no legal obligation for shareholders to disclose such information when trading their own stocks unless they were also directors or officers of the company with special access to inside knowledge. This decision established important precedent regarding insider trading and disclosure obligations among shareholders in U.S corporate law.

In the dissenting opinion for Strong v. Repide, Justice Harlan argued that the defendant, a corporate director who sold his shares to an unsuspecting buyer without disclosing material non-public information about a forthcoming dividend declaration, had committed fraud. He contended that directors of corporations have fiduciary duties towards shareholders and potential buyers of their shares. These duties include not taking advantage of their superior knowledge to deceive others in transactions involving company stock. The majority's decision absolving the director from liability was seen by Justice Harlan as undermining public confidence in corporations and markets because it allowed insiders to exploit their privileged positions at the expense of ordinary investors who lack access to critical information.