As Win Streak Ends, Bharara Faces Greater Test In 2nd Circ.


Eugene Goldman said the Manhattan U.S. Attorney’s first insider trading case loss in five years means that an appeal on two earlier such cases “illustrates how large the impending Second Circuit decision … looms over the insider trading prosecution landscape,” because a government loss could jeopardize earlier high-profile convictions and limit the scope of future prosecutions only to those closest to the original tippers. “In many cases, this will be a difficult burden to overcome and will impact whether certain individuals will even be charged,” Mr. Goldman added.