Attorneys React To 2nd Circ.’s Insider Trading Ruling


Eugene Goldman, from his perspective as former senior counsel in the SEC’s Division of Enforcement, said that because the Second Circuit, with a jurisdiction “within which lies Wall Street,” reversed two insider trading convictions, the decision “could stop multiple insider trading cases in their tracks and … burden the government with the difficulty of showing that a remote tippee was aware that the tipper shared the information for their personal gain.” Mr. Goldman also noted that the standards of proof that the court “imposed to prove a violation may also apply to SEC enforcement cases.”