Reactions Abound to Insider Trading Ruling in Newman/Chiasson Case

The legal and business community is reacting quickly and extensively to the Second Circuit’s blockbuster opinion in United States v. Newman and Chiasson.  As a convenience to interested readers, we compile links to many of those reactions here.  These are updated periodically as further developments occur.  Law firm advisories discussing the case are located at the bottom of the post.

Opinion in U.S. v. Riley (Opinion of SDNY Judge Valerie Caproni upholding insider trading conviction even though jury instructions did not conform to later Newman ruling)

Congressman thinks maybe insider trading should be illegal (Bloomberg View)

Broad Insider Trading Bill May Overcompensate For Newman (Law 360)

Congressman Introduces Bill To Ban Insider Trading (Law 360)

Narrowing the Definition of White-Collar Crimes (NY Times Dealbook)

Dropped Herbalife Insider Case Leaves Questions Unanswered (Law 360) (discussion of SEC termination of insider trading case against Jordan Peixoto)

4th Circ. To Eye Insider Trading Plea After Newman (Law 360)

Complaint filed against SDNY prosecutors – Ganek v. Leibowitz et al (SDNY complaint for alleged constitutional violations in issuance of search warrant)

Bharara Sued Over Insider Trading Raid On Hedge Fund (Law 360)

Targeted by U.S. Prosecutor, Hedge Fund Fights Back (NY Times Dealbook) (lawsuit filed by target of famous 2010 search warrant issued against three hedge funds in one of the most outrageous blunderbuss prosecutorial actions in recent years — Level Global, Loch Capital and Diamondback — which ultimately led to the demise of all three funds, the loss of hundreds of jobs by fund employees, and the now-famous case U.S. v. Newman ruling that the entire theory of the case was misguided)

Law Professors Argue that Newman Panel Decision Enhances Market Integrity (Straight Arrow Feb. 26, 2015 Blog Post)

Amicus Brief of Professors Bainbridge, Henderson and Macey in U.S. v. Newman (2d Circuit brief addressing petition for rehearing en banc)

ALJ Ruling on Motions for Summary Disposition in In re Bolan and Ruggieri (Ruling on Newman motions in SEC administrative proceeding)

Motion To Dismiss in SEC v. Payton and Durant (SDNY motion for dismissal of SEC insider trading enforcement action following dismissal of criminal charges based on U.S. v. Newman)

SEC Litigators Discuss Impact of Newman, Halliburton (Hamilton Blog)

Insider Trading Case Could Push Congress to Define a Murky World (NY Times Dealbook)

Amicus brief of National Ass’n of Criminal Defense Lawyers on motion for rehearing en banc in U.S. v. Newman: Brief of NACDL in US v. Newman (2d Circuit)

Ruggieri response to SEC supplemental filing (Response to SEC submission in ALJ insider trading proceeding)

SEC Supplemental Submission in In re Bolan and Ruggieri (SEC submission in response to ALJ Order for evidence of tipper benefit in insider trading administrative proceeding)

Chiasson Opts for Mocking Tone in U.S. v. Newman Brief (Straight Arrow Feb. 22, 2015 Blog Post)

Mark Cuban Amicus Brief Puts U.S. v. Newman Insider Trading Prosecution in Proper Context (Straight Arrow Feb. 20, 2015 Blog Post)

Mark Cuban Amicus Brief in US v. Newman (2d Circuit)

ALJ Ruling in In re Bolan and Ruggieri (ALJ decides that Newman benefit standard applies to tippee case and asks for further SEC submission)

Reply Brief on Impact of Newman Decision in In the Matter of Bolan and Ruggieri (SEC Administrative Proceeding)

Ex-Wells Fargo Analyst Says Newman Kills SEC Insider Charge (Law 360)

Newman Opposition to DOJ Petition for En Banc Review (2d Circuit Filing)

Newman Slams Bharara Challenge To 2nd Circ. Insider Ruling (Law 360)

Newman Undermines Plea In Wells Fargo Insider Suit: Filing (Law 360 article about motion to withdraw guilty plea in US v. Musante, which is available here: US v Musante Motion To Withdraw Guilty Plea)

Wyo. Fund Exec’s Guilty Plea In Doubt After Newman (Law 360) (SDNY Judge asks prosecutors to address whether testimony in connection with guilty plea was sufficient to support conviction under Newman analysis in connection with trades in advance of Brocade Communications acquisition of Foundry Networks; for a discussion of the charges, see Three more charged in insider trading probe)

U.S. prosecutor to drop insider trading charges over IBM deal (Reuters article about consequences of judge’s decision in United States v. Conradt); Judge To Dismiss IBM Insider Trading Case At Feds’ Request (Law 360 article on the same matter)

Court Sets Up a Hurdle, Not a Barrier, for Insider Trading Cases (NY Times Dealbook)

CLS Blue Sky Blog Consortium on U.S. v. Newman:

Giving Tippers a Pass: U.S. v. Newman (James Cox)
IGNORANCE IS NOW BLISS: But What Can the Government Do? (John Coffee)
Why Newman Leaves Me With a Queasy Feeling, or Deregulating the Demand for Insider Information (Ilya Belin)
Newman and Selective Disclosure (Donald Langevoort)
The Newman-Chiasson Insider Trading Case Reinforces the Need for Change (Edward Greene & Olivia Schmid)
Newman Reins in Criminal Prosecution of Remote Tippees for Insider Trading (Jill Fisch)
Insider Trading Law in Deeper Waters (Samuel Buell)

DOJ Petition for En Banc Review in Newman Case Comes Up Short (Straight Arrow Jan. 26, 2105 Blog Post)

SEC Amicus Brief in US v Newman (Filed to support DOJ Motion for Rehearing En Banc in Second Circuit)

US v Newman Petition for En Banc Review (DOJ Filing in 2d Circuit)

Newman’s Aftermath: District Court Vacates Four Insider Trading Guilty Pleas; Government Seeks Rehearing in Second Circuit (Schulte Roth)

U.S. v. Durant: DOJ Argument that Newman Reasoning Does Not Apply to Misappropriation Theory Misses the Mark (Straight Arrow Blog Post)

DOJ Brief in US v Durant (DOJ Brief Arguing that U.S. v. Newman Ruling Does Not Apply to Guilty Pleas Based on Misappropriation Theory of Insider Trading)

Newman Faces New Test As Bharara Eyes Carveout (Law 360)

Insider Trading: There Oughta Be a Law (Bloomberg)

Delving Into Morass of Insider Trading (NY Times — James Stewart article on fallout from Newman case)

Fallout for the S.E.C. and the Justice Dept. From the Insider Trading Ruling (NY Times Dealbook)

Charges dropped after insider-trading ruling (Wall Street Journal)

U.S. Wants Time to Review Landmark Insider Trading Ruling (Bloomberg)

Former SEC Attorney, James Kidney, Speaks Out on Court’s Insider Trading Bombshell (Wall Street on Parade)

US v. Newman: 2d Circuit Hands Government Stunning, Decisive, and Far-Reaching Insider Trading Defeat (Straight Arrow Blog Post)

What an Appeals Court Insider Trading Decision Does, and Doesn’t, Do (NY Times Dealbook)

The Gift of Inside Information (NY Times Dealbook)

An Outside the Law Prosecutor (Wall Street Journal)

U.S. authorities face new fallout from insider trading ruling (Reuters)

For insider trading, it’s a whole new ballgame (CNBC)

Appeals court deals blow to Justice Department by overturning two insider-trading convictions (Wall Street Journal)

Experts Take Stock of Insider Trading Ruling (Wall Street Journal)

5 takeaways from the insider-trading ruling that could crimp the pursuit of future cases (Wall Street Journal)

The New Definition of Insider Trading (Wall Street Journal)

Insider Trading Prosecutions Just Got Harder as Court Raises Bar (Bloomberg)

Preet Bharara’s Insider-Trading Record Gets Rocked on Appeal (Business Week)

Attorneys React To 2nd Circ.’s Insider Trading Ruling (Law 360)

2nd Circ. Knocks Preet Down, Not Out  (Law 360)

2nd Circ. Rebalances Insider Trading Law (Law 360)

2nd Circ. Raises Bar For Insider Trading Prosecutions (Law 360)

U.S. court reverses fund managers’ insider trading convictions (Reuters)

Two Insider Trading Convictions Are Overturned in Blow to Prosecutors (NY Times Dealbook)

How the Whiff of Insider Trading Felled 2 Hedge Funds (NY Times Dealbook)

Law Firm Advisories

The New Insider Trading Landscape: United States v. Newman and Its Impact on Pending Insider Trading Prosecutions (Buchanan Ingersoll)

Wachtell Lipton Memo on US v Newman (Wachtell Lipton)

Second Circuit Court of Appeals Issues Significant Insider Trading Ruling in U.S. v. Newman (Dechert)

Second Circuit Overturns Insider Trading Convictions of “Downstream” Tippees (Bryan Cave)

Insider Trading: U.S. Court of Appeals (Second Circuit) Vacates Convictions, Clarifies Requirements of Tippee Liability (Davis Polk)

Second Circuit Overturns Insider Trading Convictions of Two Portfolio Managers (Bracewell & Giuliani)

Raising the Bar for Tippee Liability: Second Circuit Overturns Two Insider Trading Convictions (Kaye Scholer)

Second Circuit Rules for Defendants in Landmark Insider Trading Case (Paul Weiss)

Court Of Appeals Reins in Prosecutors in Insider Trading Cases (Akin Gump)

United States v. Newman: Second Circuit Ruling Portends Choppier Waters for Insider Trading Charges Against Downstream Tippees (Gibson Dunn)

Second Circuit Raises the Bar for Government Insider Trading Prosecutions – Practical Implications for the Business Community (Goodwin Proctor)

Hello Newman! (and Chiasson): Second Circuit Decision Raises the Bar for Government to Prove Liability of “Remote Tippees” in Insider Trading Cases (Mintz Levin)

Second Circuit Rejects Government’s Expansive Theory of Insider Trading (Arnold & Porter)

The Boundaries for Insider Trading Prosecutions See a Resurgence: The 1980s Are Back! (Baker Hostetler)

Straight Arrow

December 11, 2014

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