News & Analysis as of

Confidential Information US v Newman

Proskauer - Corporate Defense and Disputes

Insider Trading for Dummies: Judge Rakoff Tries to Simplify the Law

A lot of ink has been spilled over the crime of insider trading, which – in the view of U.S. District Judge Jed Rakoff – “is a straightforward concept that some courts have managed to complicate.” In his recent decision in...more

Proskauer Rose LLP

Second Circuit Again Holds That Tipper/Tippee Liability Can Arise from a Gift of Inside Information Even Without a Close Personal...

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The Second Circuit confirmed this week that a "meaningfully close personal relationship" is not required for insider-trading liability where a tipper discloses inside information as a gift with the intent to benefit the...more

Patterson Belknap Webb & Tyler LLP

Newman’s “Meaningfully Close Personal Relationship” Requirement No Longer Good Law

A divided Second Circuit panel (Katzmann, Pooler (dissenting), Chin) on Wednesday upheld the insider trading conviction of former SAC Capital portfolio manager Mathew Martoma. Confronting its precedent in United States v....more

Latham & Watkins LLP

Divided Second Circuit Broadens Personal Benefit Test for Insider Trading Liability

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The court’s Martoma decision reinvigorates the US government’s ability to prosecute insider trading cases. Key Points: - The majority opinion overrules recent case law requiring that an insider have a meaningfully close...more

Cadwalader, Wickersham & Taft LLP

2016 Year In Review: Securities Litigation And Regulation

2016 was an active year in securities litigation. In the first half of 2016 alone, plaintiffs filed 119 new federal class action securities cases. It was also a busy year for SEC enforcement proceedings, with a record 868...more

Morgan Lewis

Trading and Markets Enforcement Report - January 2017

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January 2017 - The last several years have seen law enforcement and regulatory bodies sharpen their focus on trading activity in the securities and derivatives markets. This focus has coincided with the advent of new and...more

Manatt, Phelps & Phillips, LLP

Corporate Investigations and White Collar Defense - December 2016

Insider Trading: Supreme Court Affirms Salman - Why it matters: On December 6, 2016 the Supreme Court decided Salman v. U.S., in which it upheld the petitioner’s insider trading conviction. The Court found its 1983...more

Baker Donelson

Salman v. U.S.: More Questions than Answers?

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The United States Supreme Court recently rendered a decision in Salman1 resolving a circuit split over whether the government prosecuting an insider trading case must show that the person giving an insider tip received...more

Lowndes

7 Things You Should Consider To Avoid Criminal Prosecution

Lowndes on

In its first insider trading ruling in almost 20 years, the U.S. Supreme Court upheld a ruling by the 9th Circuit Court of Appeals that a person can be held criminally liable for passing inside information to a friend or...more

Polsinelli

Is That What Friends (and Family) Are For? Supreme Court Resolves Circuit Split in Insider Trading Case But Questions Remain

Polsinelli on

A recent Supreme Court decision provides new guidance in the area of insider trading liability without personal benefit, and resolves an existing split between the Ninth Circuit and Second Circuit Court of Appeals. In Salman...more

Kilpatrick

Supreme Court Confirms Expansive View of Insider Trading

Kilpatrick on

Perhaps the most serious charge that could be leveled against a reader of this blog is that of being engaged in or associated with “insider trading.” The allegation alone is enough to derail or end a promising career. ...more

Blank Rome LLP

Unanimous Supreme Court Decision Will Significantly Increase the Ability of Federal Prosecutors to Pursue Certain Insider Trading...

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Action Item: Last week, in a unanimous decision in Salman v. U.S., the U.S. Supreme Court affirmed the Ninth Circuit’s interpretation of insider trading rules, permitting prosecutions even when the insider/tipper did not...more

Seyfarth Shaw LLP

Salman v. United States Broadens Some Contours of Insider Trading Law, but Leaves Others Uncertain

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Salman v. United States, is only the third insider-trading case heard by the United States Supreme Court. In Salman, the Court upheld the insider trading conviction of Bassam Salman, ruling that a tipper’s gift of...more

Clark Hill PLC

First Supreme Court Insider Trading Decision in Almost Two Decades Resolves Split Between Circuits

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Last week, the United States Supreme Court issued its first decision in an insider trading case in nearly two decades to resolve a split between the Second and Ninth Circuit Courts of Appeal. In its unanimous decision in...more

BakerHostetler

The Supreme Court's Limited Insider Trading Ruling: Salman Decision Narrowly Affirms Dirks and Leaves Portions of Newman Intact

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On December 6, 2016, the United States Supreme Court issued a unanimous decision in Salman v. United States, affirming what it had set out in dicta in its 1983 decision in Dirks v. SEC by finding that a factfinder may infer...more

Pierce Atwood LLP

Supreme Court Lowers Burden in Insider Trading Prosecutions

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On December 6, 2016, the U.S. Supreme Court issued its first insider trading decision in nearly two decades unanimously affirming the Ninth Circuit and holding that an insider’s “gift” of confidential information to a...more

Cadwalader, Wickersham & Taft LLP

The Supreme Court Restores Implied Benefit Theory in Insider Trading Prosecutions of Downstream Tippees

Friends and relatives of corporate insiders who knowingly receive and trade on inside information now confront greater exposure for federal securities laws violations. On December 6, 2016, the Supreme Court held in United...more

Holland & Knight LLP

Supreme Court Clarifies Insider Trading

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The U.S. Supreme Court has clarified what constitutes illegal insider trading by making it easier for the government to bring such cases. In a Dec. 6, 2016, unanimous decision in Salman v. United States, the court held that...more

Orrick, Herrington & Sutcliffe LLP

United States Supreme Court Clarifies Standard for Insider Trading

Today, the United States Supreme Court held that an individual may be convicted of insider trading after receiving an investment tip from an insider who obtained no direct financial benefit from the disclosure. In a unanimous...more

K&L Gates LLP

Key Implications of the Supreme Court’s Decision in Salman

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Yesterday the Supreme Court issued its decision in Salman v. United States, the first insider trading case to reach the Court in decades. In a unanimous opinion delivered by Justice Alito, the Court affirmed the criminal...more

BakerHostetler

Supreme Court Holds That a Gift of Confidential Information Supports Insider Trading Conviction

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In a highly anticipated decision, the Supreme Court yesterday upheld a man’s conviction for insider trading based on a tip provided by his brother-in-law and rejected his contention that, in order to convict him, the...more

Goodwin

Supreme Court Weighs In On Insider Trading Law – Finds Giving Gifts Can Be Its Own Reward

Goodwin on

In its decision issued yesterday in Salman v. United States, 580 U.S. __ (2016), the United States Supreme Court unanimously affirmed a criminal insider trading conviction even though there was no evidence that the tipper...more

King & Spalding

In Salman v. United States, Supreme Court Holds that the Government Need Not Prove that an Insider Received a Pecuniary Benefit in...

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On December 6, 2016, the Supreme Court issued a unanimous decision in Salman v. United States, holding that a tipper’s gift of confidential, inside information to a trading relative constituted a sufficient personal benefit...more

Morgan Lewis

The Salman Decision-The Supreme Court Weighs in on Insider Trading

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Significant decision comes after nearly two decades of silence. For the first time in nearly 20 years, the US Supreme Court has weighed in on insider trading law and handed a victory to the government and its insider...more

Burr & Forman

Supremes Reaffirm Dirks Gifting Theory of Insider Trading; Limit Newman

Burr & Forman on

A unanimous Supreme Court reaffirmed the “gifting” theory of insider trading under Dirks and rejected Newman “to the extent” it required more. The Court’s long-standing rule in Dirks v. SEC, 463 U.S. 646, 664 (1983)...more

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