The U.S. dropped insider-trading charges against Michael Steinberg, a former fund manager at SAC Capital Advisors who was convicted by a federal jury, in the latest fallout from a major appeals court ruling that made such prosecutions more difficult.
Bloomberg News reports that the government also abandoned charges against six people who pleaded guilty and cooperated with prosecutors in the case, U.S. Attorney Preet Bharara said in a statement Thursday.
The decision comes after the U.S. Supreme Court declined to hear the government’s challenge of a decision overturning the convictions of fund managers Todd Newman and Anthony Chiasson in a related case.
Prosecutors have now dismissed or lost on appeal 14 of 87 convictions won during a six-year crackdown on insider trading.
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