Newman/Martoma: The Insider Trading Law's Impasse and the Promise of Congressional Action

The prohibition against insider trading is a judge-made law that has evolved for over fifty years, and has reached a critical impasse in two recent decisions in the Second Circuit Court of Appeals: United States v. Newman and United States v. Martoma. Judges of the Second Circuit are sharply divided over what conduct constitutes improper trading on material nonpublic information ("MNPI"), leaving the law in profound disarray.

Newman/Martoma: The Insider Trading Law's Impasse and the Promise of Congressional Action

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