Tim Crudo Quoted in "Attorneys React To 2nd Circ.'s Insider Trading Ruling"
Partner Tim Crudo is quoted in “Attorneys React To 2nd Circ.’s Insider Trading Ruling,” Law360
December 10, 2014
Law360, New York – “In a landmark insider trading ruling Wednesday, the Second Circuit set a stricter standard for prosecuting people who are one or more layers removed from sources of confidential information, overturning the convictions of hedge fund managers.” Tim Crudo offers his opinion on why this ruling is significant:
‘ “This will make it more difficult for the DOJ to go after remote tippees. Insider trading cases already rely heavily on indirect evidence, but proof a tippee knew the insider got a benefit should be tougher to find than the usual evidence proving he knew the information was material, nonpublic and provided in breach of a duty. It will be interesting to see what impact this has on the SEC, which has a lower burden of proof at trial. You may see the SEC trying to pick up the slack in remote tippee cases.” ‘