We discuss below what remote tippees, which may involve hedge funds and other investment firms that are often several steps removed from the original source of the information, would need to know for liability to arise. Along the way, we touch on the other elements relevant to liability as well—fraud, duty, breach, and personal benefit. The burden on the government is an exceptionally challenging one in the case of remote tippees, and the Supreme Court intended that to protect market participants in the business of acquiring, ferreting out and analyzing vast amounts of information.
