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Insider Trading After Newman: The Impact on Financial Institutions  


Author:  Elizabeth K. Friedrich.


Source: Volume 29, Number 04, March/April 2016 , pp.23-30(8)




Journal of Taxation and Regulation of Financial Institutions

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Abstract: 

Cases involving insider trading often affect financial institutions due their employees’ proximity to material non-public information as well as investment funds’ potential to benefit from the possession of such information. This article discusses the 2014 Second Circuit case of the United States v. Newman and its fallout, which made it more difficult for the government to assert claims for insider trading. On January 19, 2016, the Supreme Court agreed to clarify the type of “personal benefit” required to establish an insider trading claim post-Newman.

Keywords: insider trading; material non-public information; personal benefit; tipper; tippee; United States v. Newman; Dirks v. SEC; U.S. v. Jiau

Affiliations:  1: New York Law School.

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