Publisher: Reuters Author: Nate Raymond The U.S. Securities and Exchange Commission's controversial use of in-house…
The Justice Department asked the Supreme Court on Thursday to review a court ruling that sharply narrowed the definition of insider trading.
Donald B. Verrilli Jr., the solicitor general, filed a petition with the Supreme Court to examine the ruling by a three-judge panel in a federal appellate court in December that overturned the convictions of two hedge fund managers, Anthony Chiasson and Todd Newman, and threatened to undermine a number of other convictions.
The ruling was a major setback for Preet Bharara, the United States attorney in Manhattan, who secured more than 80 convictions in a widespread, multiyear crackdown on insider trading on Wall Street. It threatens to reverse many of the convictions and pleas secured by Mr. Bharara’s office.
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