Former McDermott Will & Emery partner Michael McFall has been found not guilty in the insider trading case brought against him by the Financial Services Authority (FSA).

McFall was acquitted in Southwark Crown Court today (3 June) after a unanimous verdict was delivered by an 11-member jury. The jury took just an hour and a half to reach its verdict.

Also acquitted was Peter King, the former financial director of Neutec Pharma. The trial began on 19 April in front of Judge Peter Testar.

Former Dorsey & Whitney corporate partner Andrew Rimmington, who was also accused of insider dealing, was discharged last week on compassionate grounds following the death of his brother last month in an assault.

After hearing the verdict on McFall and King, the FSA told the court they would offer no further evidence against Rimmington, leading the judge to order the jury to record a verdict of not guilty.

The verdict, which came on the same day as the FSA handed out its highest-ever civil fine, will be viewed as a blow to the watchdog, which has moved to demonstrate a tougher stance against City wrongdoing in recent months. The case could also add weight to proposals from the new coalition Government to create a unified agency to tackle white-collar crime.

The trio were charged with eight counts of insider dealing relating to Novartis' 2006 takeover of Neutec. King also faced an additional charge of disclosing non-public information.

McFall was advised by Kingsley Napley criminal and regulatory partner Stephen Gentle with Bridget Petherbridge of QEB Hollis Whiteman instructed as counsel. King was advised by Irwin Mitchell regulation and investigations partner Sarah Wallace with Ken MacDonald QC of Matrix Chambers instructed as counsel.

Rimmington was advised by Saunders Law Partnership – a niche firm that provides publicly-funded representation. He was previously being advised by Barlow Lyde & Gilbert partner Ian Mason but is understood to have applied for legal aid.

Wallace commented: "We are delighted by the successful acquittal of our client Andrew King. We always believed the FSA's case against him was flawed but Mr King has faced a long fight to clear his name and he and his family have faced years of worry. Having worked with them throughout this, we are very pleased that they can now move on with their lives."

"However, the outcome of this case is unlikely to deter the FSA's forceful crackdown on City insider dealing and financial markets crime. The FSA's financial crime prosecution agenda is gathering momentum although it is currently not clear how the proposal for a unified fraud prosecution agency could affect the FSA."

In March the FSA secured its most significant conviction to date at Southwark Crown Court with former Cazenove partner Malcolm Calvert this week being convicted on five counts of insider dealing. The case was the third successful prosecution for insider dealing by the City regulator, which hailed the result as a "milestone".