Second Circuit’s Newman Decision: Key Implications for the Defense Bar

Todd Harrison and Eugene Goldman were authors of this bylined article on the Second Circuit decision overturning a key insider trading conviction, which the authors called “a landmark ruling that will reshape insider trading defense strategy.” They explained two key changes, including how “the decision will impose a new evidentiary burden on prosecutors in proving scienter,” and how the court “substantially narrowed what constitutes a ‘personal benefit’” in insider trading cases.