U.S. Insider Trading Cases Imperiled as Supreme Court Spurns Appeal of Newman Decision

The U.S. Supreme Court let stand a major insider trading ruling that threatens at least 10 convictions and creates what the Obama administration calls a road map for securities fraud (United States v. Newman, U.S., 15-137, certiorari denied, 10/5/15).

Rejecting an administration appeal without comment, the justices refused to consider reinstating the overturned convictions of hedge fund managers Todd Newman and Anthony Chiasson WSLR, January 2015, page 15and WSLR, January 2015, page 18.

Among those who may benefit are SAC Capital Advisors LP’s Michael Steinberg, who is seeking to reverse his own conviction on similar grounds.

The rebuff is a blow to U.S. ...