Thumbing through Wednesday’s decision in U.S. v. Newman, or reading the transcript of oral arguments before the U.S. Court of Appeals for the Second Circuit, you could get the impression that tossing the insider trading convictions of Todd Newman and Anthony Chiasson was an easy call for the court.
According to the Second Circuit’s ruling, it “follows naturally” from U.S. Supreme Court precedent that trading on inside information isn’t a crime unless “the tippee knew that an insider disclosed confidential information and that he did so in exchange for a personal benefit.” The government hadn’t proved that hedge fund managers Newman or Chiasson met either of those requirements, the panel found, so their convictions must be thrown out.
This content has been archived.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
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
