U.S. expands insider-trading case against Gupta
Federal prosecutors say they merely scratched the surface last spring with their insider-trading allegations against former McKinsey & Co. Partner and Goldman Sachs Director Rajat Gupta.
February 01, 2012 at 05:48 AM
3 minute read
The original version of this story was published on Law.com
Federal prosecutors say they merely scratched the surface last spring with their insider-trading allegations against former McKinsey & Co. Partner and Goldman Sachs Director Rajat Gupta.
Last March, the Securities and Exchange Commission (SEC) brought civil charges against Gupta for allegedly leaking inside information to convicted inside trader Raj Rajaratnam, the former Galleon group founder who is now serving an 11-year prison term. Gupta surrendered to the Federal Bureau of Investigation in October 2011 and was released on $10 million bail. He faces separate criminal charges related to the alleged insider-trading scandal, with a trial scheduled for April.
But yesterday, prosecutors filed a new indictment in Manhattan federal court that says Gupta's illegal activity lasted longer and involved more illegal trades than the government had previously thought.
The new charges against Gupta claim he gave four illegal tips to Rajaratnam, which is double the amount that was alleged in the original indictment. The new charges could increase Gupta's jail time if he is convicted. Prosecutors also say the scheme began in 2007 rather than 2008, as they originally alleged. Gupta is charged with five counts of securities fraud and one count of conspiracy.
In a statement, one of Gupta's lawyers said the new charges are “totally baseless.”
Read the Thomson Reuters and Wall Street Journal for more about the new charges against Gupta.
Federal prosecutors say they merely scratched the surface last spring with their insider-trading allegations against former McKinsey & Co. Partner and
Last March, the Securities and Exchange Commission (SEC) brought civil charges against Gupta for allegedly leaking inside information to convicted inside trader Raj Rajaratnam, the former Galleon group founder who is now serving an 11-year prison term. Gupta surrendered to the Federal Bureau of Investigation in October 2011 and was released on $10 million bail. He faces separate criminal charges related to the alleged insider-trading scandal, with a trial scheduled for April.
But yesterday, prosecutors filed a new indictment in Manhattan federal court that says Gupta's illegal activity lasted longer and involved more illegal trades than the government had previously thought.
The new charges against Gupta claim he gave four illegal tips to Rajaratnam, which is double the amount that was alleged in the original indictment. The new charges could increase Gupta's jail time if he is convicted. Prosecutors also say the scheme began in 2007 rather than 2008, as they originally alleged. Gupta is charged with five counts of securities fraud and one count of conspiracy.
In a statement, one of Gupta's lawyers said the new charges are “totally baseless.”
Read the Thomson Reuters and Wall Street Journal for more about the new charges against Gupta.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View All
NLRB Blisters Skilled Care Home Chain That Terminated Nursing Assistant Who Complained About Wages
6 minute read
Class Certification, Cash-Sweep Cases Among Securities Litigation Trends to Watch in 2025
6 minute read
JetBlue Airways Will Pay $2M to Settle DOT Charges of Chronically Delayed Flights
Trending Stories
- 1'Pull Back the Curtain': Ex-NFL Players Seek Discovery in Lawsuit Over League's Disability Plan
- 2Tensions Run High at Final Hearing Before Manhattan Congestion Pricing Takes Effect
- 3Improper Removal to Fed. Court Leads to $100K Bill for Blue Cross Blue Shield
- 4Michael Halpern, Beloved Key West Attorney, Dies at 72
- 5Burr & Forman, Smith Gambrell & Russell Promote More to Partner This Year
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250
