The decision of the United States Court of Appeals for the Second Circuit in Manhattan in United States v. Newman, which roiled the world of insider trading when it was announced in December 2014, seems to be relegated to little more than a footnote in the history of securities fraud with an opinion from the same court affirming the conviction of Mathew Martoma.
The law may be settled now with the decision’s finding that the approach in Newman to tipping confidential information “can no longer be sustained.” That is, unless the Second Circuit decides to have all 13 active judges rehear the case, known as en banc review, potentially raising anew questions about what evidence is needed to prove an illegal tip of confidential information.
‘Enforcement 40’ for 2020
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