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Insider Trading Corporate Executives

White & Case LLP

DOJ’s Novel Application of Insider Trading to 10b5-1 Plans Leads to Conviction

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In April, we issued an alert discussing the U.S. Securities and Exchange Commission ("SEC") and Department of Justice’s ("DOJ") expansion of insider trading to 10b5-1 plans. On June 21, 2024, a federal jury in California...more

BCLP

Conviction of Insider in Connection with 10B5-1 Trading Plan

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As discussed in our March 3, 2023 post, the DOJ and SEC brought an insider trading case against the founder and former CEO and Executive Chairman of Ontrak, Inc. based upon the former executive failing the “clean hands”...more

Vinson & Elkins LLP

Trading Places: The SEC’s Crackdown on Insider Trading Continues

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Over the last several weeks, federal regulators and prosecutors have sent a strong signal to company executives that they will be using every tool in their arsenal to combat insider trading. The government’s crackdown has...more

Perkins Coie

DOJ Brings First Criminal Charges Stemming From Use of Rule 10b5-1 Trading Plan

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On March 1, 2023, the U.S. Department of Justice (DOJ) unsealed an indictment against the CEO of a publicly traded healthcare company (the Executive) relating to charges of an insider trading scheme. The indictment represents...more

BCLP

Criminal indictment of Executive Chairman and parallel civil charges show Feds' willingness to challenge Rule 10b5-1 trading plans

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The Justice Department recently indicted the Executive Chairman of Ontrak, Inc. alleging that he failed the “clean hands” requirement because he had been aware of material nonpublic information relating to the potential loss...more

McDermott Will & Emery

SEC Committee Supports Chairman's Call to Reform Rule 10b5-1 Trading Plans

Last week, the US Securities and Exchange Commission’s (SEC) Investor Advisory Committee (IAC) issued recommendations that the SEC impose new restrictions and disclosure requirements for trading plans that afford executives...more

Goodwin

SEC Chairman’s Comments Signal Likely Changes to Rule 10b5-1 Trading Plans

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Rule 10b5-1 trading plans have faced increased scrutiny since the onset of the COVID-19 pandemic and the corresponding public focus on stock sales by executives of public life sciences companies. On June 7, 2021, SEC Chairman...more

Bass, Berry & Sims PLC

Insider Trading Policies and Training: Time for Another Refresher?

There has been significant discussion lately about the need to restrict or improve the disclosure of trades made by corporate executives under 10b5-1 plans. In late 2019, I co-authored a series for Corporate Counsel...more

Foley Hoag LLP

SEC Division of Enforcement Warns of COVID19 Insider Trading Risks

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On March 23, the SEC Division of Enforcement (Enforcement) issued a public statement bluntly warning issuers and insiders connected to them, along with broker-dealers and investment advisers, about the unique risks of insider...more

Dechert LLP

SEC Approves Amendments to FINRA New Issue and Anti-Spinning Rules

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The Securities and Exchange Commission approved amendments to the Financial Industry Regulatory Authority New Issue Rule (Rule 5130) and Anti-Spinning Rule (Rule 5131) (collectively, Rules) on November 5, 2019...more

Kilpatrick

Supreme Court Confirms Expansive View of Insider Trading

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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

Bradley Arant Boult Cummings LLP

In Rare Insider Trading Decision, Supreme Court Declines to Restrict Scope of Personal Benefit Required to Impose Liability on...

The Supreme Court issued its decision in Salman v. United States on Tuesday, unanimously affirming the conviction of Petitioner Bassam Salman. Following a circuit split on the issue of “gift-giving” and personal benefits, the...more

Sheppard Mullin Richter & Hampton LLP

U.S. Supreme Court Confirms that a Corporate Insider Receives a “Personal Benefit” by Providing Confidential Information to a...

In Salman v. United States, No. 15-628, 580 U.S. ___, 2016 WL 7078448 (2016), the United States Supreme Court (Alito, J.) unanimously affirmed the insider trading conviction of petitioner Bassam Salman on the ground that Mr....more

Skadden, Arps, Slate, Meagher & Flom LLP

"Salman Rejects Heightened Personal-Benefit Requirement in Insider Trading Prosecutions"

On December 6, 2016, the U.S. Supreme Court in Salman v. United States unanimously held that an insider's gift of confidential information to a "trading relative or friend" is sufficient to establish the personal benefit to...more

Patterson Belknap Webb & Tyler LLP

Supreme Court in Salman Says: “This One Is Easy,” Reaffirming Dirks and Rejecting Newman

The United States Supreme Court (Alito, J.) issued a unanimous decision today affirming the Ninth Circuit’s decision in Salman v. United States, an insider trading case concerning tippee liability. The Court held that the...more

Foley & Lardner LLP

Supreme Court Upholds Insider Trading Prosecutions on Mere Disclosure to Friends and Family

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In a much-anticipated ruling on insider trading, the Supreme Court held today, in Salman v. United States, that the disclosure of inside information by a corporate insider (tipper) to a “trading relative” (a tippee)...more

Patterson Belknap Webb & Tyler LLP

Supreme Court in Salman Says: “This One Is Easy,” Reaffirming Dirks and Rejecting Newman

Yesterday, the Supreme Court decided a major insider trading case, Salman v. United States, 15-628. In Salman, the Supreme Court reaffirmed its prior ruling in Dirks v. SEC and held that a jury could infer that a tipper...more

Farella Braun + Martel LLP

Insider Trading Conviction in First Insider Trading Case in Nearly Two Decades Affirmed by Supreme Court

On December 6, 2016, after nearly twenty years of silence on insider trading, the U.S. Supreme Court unanimously affirmed the Ninth Circuit in holding that prosecutors need not show that a tipster received a pecuniary or...more

Bracewell LLP

Supreme Court Decision in Salman

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Yesterday, the Supreme Court confirmed a more expansive application of criminal insider trading violations when it unanimously affirmed the Ninth Circuit Court of Appeals decision in Salman v. United States. In doing so, the...more

Dechert LLP

Supreme Court Gives Government Victory on Significant Insider Trading Case

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The Supreme Court in Salman v. United States yesterday issued its most significant ruling in an insider trading case in more than two decades. In a unanimous, brief opinion written by Justice Alito, the Supreme Court affirmed...more

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