Whistle-Blowers Should Fear Insider-Trade Ruling, Defendants Say

Two former Deerfield Management Co. partners convicted of insider trading with secret government information asked a U.S. appeals court to reconsider a ruling they claim threatens whistleblowers and good-government advocates who disclose wrongdoing by officials.

Robert Olan and Theodore Huber, who traded health-industry stocks on the tips they got about Medicare reimbursement rates, on Monday asked the full federal appeals court in Manhattan to reconsider an earlier ruling by a three-judge panel, citing the “extraordinary consequences” if it’s not reversed.

Olan and Huber want a review of a Dec. 30 decision by the panel, which ruled 2-1 that confidential ...