Securities,
Government,
Criminal,
Corporate
Feb. 12, 2020
2nd Circuit abandons insider trading ‘personal benefit’ test
A recent ruling sets a lower burden for bringing insider trading cases under Title 18 and will likely encourage prosecutors to charge more insider trading cases under Section 1348 rather than — or in addition to — the Title 15 securities fraud provisions, which have long been the favored vehicles for bringing such prosecutions.
Matthew E. Sloan
Partner
Skadden, Arps, Slate, Meagher & Flom LLP
Email: matthew.sloan@skadden.com
Matthew is a partner in the Litigation and Government Enforcement Practice in Skadden's Los Angeles Office.
Emily Ludmir Aviad
Counsel
Skadden, Arps, Slate, Meagher & Flom LLP
Emily is counsel in the Litigation and Government Enforcement Practice in the firm's Los Angeles office.
The 2nd U.S. Circuit Court of Appeals recently departed from decades of insider trading jurisprudence by jettisoning the "personal benefit" requirement for certain insider trading convictions. In United States v. Blaszczak, 18-2811, 2019 WL 7289753 (2d Cir. 2019), the 2nd Circuit held that, when prosecuting...
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