News In Brief

A former Goldman Sachs board member accused the Securities and Exchange Commission on Friday of spoiling his reputation by accusing him of passing along inside information without ever bringing the accusations in federal court. A lawyer for the ex-board member, Rajat Gupta, responded to the civil charges by suing the SEC in federal court in Manhattan, saying the agency’s March 1 action deprived Mr. Gupta of the constitutional protections he would have received if the SEC accused him in court.

Attorney Gary Naftalis of Kramer Levin Naftalis & Frankel said in the court papers that Mr. Gupta denies all allegations of wrongdoing and “stands ready to mount a defense against each and every one of the commission’s charges.” He added that the SEC had launched a “flawed case premised in large part on unreliable evidence being used in an attempt to bring down a man of sterling reputation and remarkable achievements without the procedural safeguards historically accorded to all persons similarly charged.”