In Wake of Salman, Friendship is Key Question For Insider Trading Liability

White Collar Defense shareholder Jason de Bretteville published a post mortem analysis of the Supreme Court’s December 6, 2016 decision in Salman v. United States. in the Westlaw Journal’s Corporate Officers and Directors Liability expert analysis section. In the article, “In Wake of Salman, Friendship is Key Question For Insider Trading Liability,” de Bretteville states that in reaffirming a long-standing rule that gifts of inside information to “trading relatives and friends” trigger criminal insider trading liability, the Court did little more than “modestly restate the holding in its 1983 opinion in Dirks v. Securities and Exchange Commission,” in which the Court made insider tips illegal if the tipper received a personal benefit in exchange for the information. “Under Dirks and now under Salman, a jury can find such personal benefit ‘when an insider makes a gift of confidential information to a trading relative or friend.’” Read the article.

Friendship is the Key Question For Insider Trading Liability by Stradling on Scribd