Second Circuit Overturns Insider Trading Convictions, Requiring Knowledge of Personal Benefit as Element in Tippee Cases

December 10, 2014

Second Circuit Overturns Insider Trading Convictions, Requiring Knowledge of Personal Benefit as Element in Tippee Cases

In a sweeping decision that stands to curtail the scope of insider trading prosecutions, today the United States Court of Appeals for the Second Circuit, in United States v. Newman et al. 13-1837-cr, overturned the 2013 convictions of two portfolio managers and directed the lower court to dismiss the indictments against them with prejudice.