A U.S. appeals court on Wednesday signaled it was unlikely to overturn the 2012 insider trading conviction of Rajat Gupta, a former director of Goldman Sachs and global managing director of McKinsey & Co.
Reuters reports that during arguments before the 2nd U.S. Circuit Court of Appeals in New York, a lawyer for Gupta argued that jurors were given improper instructions in light of a major 2014 appellate ruling that limited the reach of insider trading laws.
Prosecutors had accused Gupta, 67, of passing tips to hedge fund manager Raj Rajaratnam about Goldman's financial results and a crucial $5bn investment from Warren Buffett's Berkshire Hathaway in 2008.
But citing the 2014 ruling, Gary Naftalis, Gupta's lawyer, jurors were given instructions that allowed them to convict Gupta without any proof as legally required that he tipped the Galleon Group founder in exchange for a quid pro quo.
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