US Government criticises insider trading ruling

A federal appeals court ruling that makes it harder to obtain insider-trading convictions was called 'dramatically' wrong in the U.S. government’s first formal response to the sweeping decision.

Bloomberg News reports that the criticism of last month’s decision was made in a separate case and may indicate the Justice Department’s intention to challenge it.

The opinion by a panel of three judges dealt a blow to a multiyear insider-trading probe that netted more than 85 convictions, imperiling a handful of them.

In the December 10 ruling tossing the convictions of two fund managers, the court said that, to be found guilty of insider trading, defendants must know their tips came from someone who not only had a duty to keep it secret but also got a benefit for leaking it.

To access the complete Bloomberg News article hit the link below:

Landmark Ruling Restricting Insider Trading Prosecutions Is Dead Wrong, U.S. Says

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