In This Issue:

Overview Of Insider Trading Law; 2012 Enforcement activity; Galleon Update; Expert Network Cases; What Does Cooperation Buy You?; Global Trading, Global Enforcement; Legislative Reform; 10b5-1 Plans: Not Necessarily an Effective Defense; Against Insider Trading Claims; Conclusion; Appendix A - 2012: Penalties Imposed in Insider Trading Prosecutions; and Appendix B - 2012: Penalties Imposed in Insider Trading SEC Enforcement Actions

Excerpt from Overview Of Insider Trading Law -

“Insider trading” is an ambiguous and over inclusive term. Trading by insiders includes both legal and illegal conduct. The legal version occurs when certain corporate insiders— including officers, directors and employees—buy and sell the stock of their own company and disclose such transactions to the SEC. Legal trading also includes, for example, someone trading on information he or she overheard between strangers sitting on a train or when the information was obtained through a non-confidential business relationship. The illegal version—although not defined in the federal securities laws—occurs when a person buys or sells a security while knowingly in possession of material nonpublic information that was obtained in breach of a fiduciary duty or relationship of trust.