O'Melveny partner Anton Metlitsky and counsel Kendall Turner
authored this Bloomberg Law article, which discusses the
Second Circuit's decision to expand the scope of
insider-trading liability and potential consequences of the
ruling.
"A recent decision by the U.S. Court of Appeals for the
Second Circuit may overhaul the way insider-trading cases are
charged and litigated," Metlitsky and Turner wrote." The
decision substantially expands the scope of insider-trade liability
in tipping cases. Indeed, if the Second Circuit's decision
stands—and the wire fraud statute and the Sarbanes-Oxley
Act's securities fraud provision are read to allow conviction
for a tipping offense without proof of the traditional elements of
a tipping offense, including a personal benefit—it will have
several significant consequences."
