The Supreme Court on Tuesday unanimously ruled in favor of prosecutors in a major insider trading case, saying that gifts of confidential information from business executives to relatives violate securities laws.
Federal appeals courts had disagreed about whether people making unauthorized disclosures of material and nonpublic information must receive a tangible benefit in return for their conduct to violate insider trading laws. Justice Samuel A. Alito Jr., writing for the court, said that giving a gift to a friend or relative, whether in the form of cash or in the form of a tip, benefited the insider.
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