Last week saw two significant developments for insider trading law stemming from the Second Circuit’s important decision in U.S. v. Newman, 773 F.3d 438 (2d Cir. 2014). First, the government was dealt a significant loss when, on Jan. 22, 2015, U.S. District Judge Andrew L. Carter, Jr. vacated four insider trading defendants’ guilty pleas
Eric A. Bensky
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Second Circuit Clarifies Insider Trading Liability of Tippees
By Eric A. Bensky, Harry S. Davis, Marc E. Elovitz, Martin L. Perschetz, Howard Schiffman, Gary Stein & Jeffrey F. Robertson on
Posted in SEC Enforcement
In its highly anticipated decision in U.S. v. Newman, the U.S. Court of Appeals for the Second Circuit held on Dec. 10 that to sustain insider trading charges against a tippee who trades on material nonpublic information, the government must prove that the tippee knew that the tipper disclosed the information in breach of…