On December 6, 2016, the U.S. Supreme Court issued its long-awaited ruling in Salman v. United States. In a unanimous opinion, the Supreme Court adhered to its 1983 decision in Dirks v. SEC, 463 U.S. 646, and held that a tippee is liable for trading on inside information when the tipper “personally will benefit directly, … Continue Reading
In a widely anticipated decision, the Second Circuit on Wednesday clarified the standard for insider trading actions against tippees, downstream recipients of inside information who trade on that information. The court overturned the criminal convictions of two hedge fund portfolio managers who were convicted in 2013 as part of a massive sweep by New York … Continue Reading
This post was written by Amy Greer. I guess we will see whether SEC Chairman Mary Jo White revisits her decision to try more cases, given the unattractive string of losses that is piling up. Most recently, a Federal District Judge in the Northern District of Georgia, after a bench trial, found in favor of … Continue Reading
Australian national Trent Martin agreed not to challenge a U.S. extradition order in Hong Kong’s Eastern Magistrates Court January 4, 2012. This is the second time in more than 10 years that U.S. authorities have extradited someone on insider trading charges. Please click here to read the issued Client Alert.… Continue Reading
This post was written by Amy J. Greer, Terence Healy, and Lisa G. Blackburn. A recent insider trading prosecution has shown once again that, when you are an officer of a public company with material nonpublic information, you can never be too careful about what you say, even in what should be a secure environment. … Continue Reading
Defining “insider trading” is already difficult enough, especially across different jurisdictions where elements and defenses can vary ever so slightly, and yet can result in very big differences. But try translating the term to your Chinese-speaking client. The most commonly used translation for insider trading is “內幕交易” (nèimùjiāoyì) – which literally means “trading behind the … Continue Reading
This post was written by Amy J. Greer. After his conviction on 14 counts of securities fraud and conspiracy in what has been described as the biggest insider trading case ever – and, by his defense counsel, John Dowd as a “victory,” since he didn’t get convicted on all counts – today Galleon founder Raj … Continue Reading
This post was written by Amy J. Greer. The verdict is in – finally. Guilty on all counts. We’ll have more on that later, as will many people, no doubt. But for those who wondered what took the Rajaratnam jury so long, I think it’s worth a reminder that, while the evidence in the case … Continue Reading
In January 2010, the Securities and Exchange Commission (“SEC”) announced a new cooperation initiative intended to encourage and incentivize individuals and companies to cooperate with and assist the SEC in its investigations and enforcement actions. That initiative, which was characterized as a “potential game-changer” for the SEC’s Enforcement Division by its new director, Robert Khuzami, … Continue Reading
