Daily Archives: June 2, 2019, 10:24 am

Better the Devil You Know? Tipping Liability, Martoma and the Rise of 18 U.S.C. § 1348

First, the US Court of Appeals for the Second Circuit’s revised decision in United States v. Martoma embraced a broad theory of liability under Section 10(b) of the Securities Exchange Act and Rule 10b-5 (hereinafter, collectively, “Section 10(b)”) that prohibits a party from tipping with an “intent to benefit” the recipient. Second, when prosecutors have pursued tipping cases under 18…

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