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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInInsider Trading: Will The Supreme Court Hear Todd Newman’s Case? – Fortune
But the striking omission in Verrilli’s certiorari petition is its failure to directly take issue with the other portion of the Second Circuit’s ruling, in which that court found that the government presented “no evidence” that Newman and Chiasson knew the tipper had received a personal benefit. For that reason, even if the Supreme Court […]
Newman Decision Leads to Rare Loss for SEC in an AP | Compliance Week
Today, SEC Administrative Law Judge Jason S. Patil dismissed an insider trading case against a former Wells Fargo trader. Judge Patil found that the SEC failed to prove that the person who allegedly tipped the trader did so for a personal benefit, as required by the Second Circuit’s disruptive opinion in U.S. v. Newman. via […]
Plan B? Feds Pursue Insider Trading Charges Under SOX Provision | Compliance Week
An unusual insider trading prosecution brought under a provision of SOX (rather than Section 10(b) of the Exchange Act) suggests that prosecutors are seeking a “Plan B” in the wake of the Second Circuit’s disruptive decision in U.S. v. Newman. via Plan B? Feds Pursue Insider Trading Charges Under SOX Provision | Compliance Week.
Why Newman Might Not Be Headed to the Supreme Court | The National Law Review
The Supreme Court may well grant the government’s petition in Newman. Doing so might clarify some of the issues that remain unsettled because there is no statutory prohibition on insider trading. However, there are also reasons, some of the government’s own making, to think that the Supreme Court might take a pass here. via Why […]
U.S. Asks Supreme Court to Review ‘Erroneous’ Newman Decision | Compliance Week
Facing an August 3 deadline to appeal the Second Circuit’s Newman decision, the United States today filed a petition for a writ of certiorari with the U.S Supreme Court. The U.S. argued that the Second Circuit’s decision “erroneously departed” from the Supreme Court’s decision in Dirks v. SEC. U.S. Asks Supreme Court to Review ‘Erroneous’ […]
Judge Rakoff Finds Newman Case Not Applicable to Tipper Liability | Compliance Week
Last week, Judge Jed Rakoff denied Rajat Gupta’s motion to vacate his conviction, finding that the landmark Newman case impacts tippee liability, not tipper liability. via Judge Rakoff Finds Newman Case Not Applicable to Tipper Liability | Compliance Week.
Will Preet Bharara Take His Insider-Trading Smackdown to the Supreme Court? – Bloomberg Business
For months, hedge fund managers and traders have been wondering whether U.S. Attorney Preet Bharara would ask the Supreme Court to consider an appeals court ruling that could taint his legacy as the policeman of Wall Street. The deadline for Bharara to make a decision was July 2. But in a sign of how complex that […]
Bharara eyes Supreme Court insider-trading case review — USA TODAY
U.S. Attorney Preet Bharara’s office “is currently evaluating further appellate options” in what would be his final legal chance to uphold the criminal convictions of two hedge fund managers convicted of insider trading in 2012, according to a Securities and Exchange Commission order filed Monday. via Bharara eyes Supreme Court insider-trading case review — USA TODAY
“Friends” Who Trade on Inside Information: How United States v. Newman Changes the Law | K&L Gates
We explore below the impact of Newman on tips to friends, a common scenario in insider trading prosecutions. We also look at how lower courts have reacted to Newman and have already rejected the SEC’s argument that Newman does not apply to insider trading cases brought under the misappropriation theory. We conclude that the government […]
Remote Tippees Beware: Even if the DOJ Can’t Reach You After Newman, The SEC Can | Orrick
The fall-out from the Second Circuit’s decision in U.S. v. Newman continued last week in SEC v. Payton, when Southern District of New York Judge Jed S. Rakoff denied a motion to dismiss an SEC civil enforcement action against two former brokers, Daryl Payton and Benjamin Durant, one of whom (Payton) had just had his […]