The U.S. government wants an extra month to decide whether to appeal a landmark ruling making it harder to bring insider trading charges, a decision that also threw out key convictions in Manhattan U.S. Attorney Preet Bharara’s seven-year probe of market manipulation.
Bloomberg News reports that U.S. Solicitor General Donald Verrilli Jr. and Bharara want the time to consider their options following the decision by the U.S. Court of Appeals in New York, which required juries find a defendant knew the original source of a tip got something in exchange for it before convicting.
A three-judge panel last week exonerated former Diamondback Capital Management LLC hedge fund manager Todd Newman and Level Global Investors LP co-founder Anthony Chiasson. They ruled unanimously that jury instructions omitted the element of benefit to the tipper, making conviction too easy. The government may seek a rehearing from the same panel, or from all judges on the appeals court. It could also ask the U.S. Supreme Court to hear an appeal, or drop the case entirely.
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