4 Takeaways from The SEC’s Latest In-House Loss


Steven Scholes analyzed how the Second Circuit’s landmark Newman insider trading decision impacted an SEC administrative judge’s rejection of insider trading charges against a bank executive. “What Newman says is that [the benefits aspect of tippee liability is] not enough, you can’t just assume it away,” Mr. Scholes said. “As a result of Newman, the question of personal benefits is going to be litigated more robustly than in the past. Historically, it has not been a very robust defense. Now it is.”