Newman Faces New Test As Bharara Eyes Carve-Out


Eugene Goldman said that ambiguities about insider trading in the Second Circuit’s U.S. v. Newman decision “will need cleaning up quickly. It has to be addressed.” Mr. Goldman cited as an example the court’s statement regarding “the elements of tipping liability” under the misappropriation theory, noting that the use of the phrase “the elements” was likely a reference to the elements that the court itself had just laid out in the opinion, followed by a citation to SEC v. Obus, a Second Circuit opinion that primarily addressed the misappropriation theory.