Publisher: Reuters Author: Nate Raymond The U.S. Securities and Exchange Commission's controversial use of in-house…
A federal appeals court on Wednesday overturned two of the government’s signature insider trading convictions, a stunning blow to prosecutors and their campaign to root out illegal activity on Wall Street.
In a 28 page decision that could rewrite the course of insider trading law, the US court of Appeals for the 2nd Circuit of Manhattan tossed out the case against two former hedge fund traders, Todd Newman and Anthony Chiasson. Citing the trial judge’s “erroneous” instruction to jurors, the court not only overturned the convictions but threw out the cases altogether.
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