What’s at Stake for Insider Trading Prosecutions after U.S. v. Newman

March 19, 2015 – Media Mention
Westlaw Journal Securities Litigation & Regulation

Arthur Jakoby was quoted in Westlaw Journal's Securities Litigation & Regulation newsletter about the effect of the U.S. v. Newman federal appeals court ruling on insider trading and how it may raise the standard required for prosecution. ”Over many years, prosecutors have forced numerous guilty pleas from defendants unwilling — and often unable to afford — to challenge the federal government’s skewed position that the mere existence of a loosely defined ‘friendship’ between tipper and tippee is sufficient under the U.S. Supreme Court in Dirks to support insider trading liability,” Arthur said. "A trader should not have to worry that entering into an innocent transaction that is free from the taint of a quid pro quo exchange could nevertheless subject him to her to prosecution."