Livingston had worked for Merrill Lynch for 20 years as a securities sales representative (account executive). In January 1972, he and 47 other account executives were given the honorary title of...

Livingston had worked for Merrill Lynch for 20 years as a securities sales representative (account executive). In January 1972, he and 47 other account executives were given the honorary title of “vice president”because of their outstanding sales records. None of their duties changed, however, and they never attended a meeting of the board of directors. In November and December 1972, Livingston sold and repurchased the same number of shares of Merrill Lynch, making a profit of $14,836.37. Merrill Lynch sued Livingston for recovery of the profits, claiming that he had violated Section 16(b) of the Securities and Exchange Act of 1934. Livingston denied such charges. Who won this case, and why?