On January 23, 2015, the U.S. government filed a petition seeking a panel rehearing and rehearing en banc of the Second Circuit’s decision in U.S. v. Newman, which reversed the insider trading convictions of two “tippees.” The government’s petition argued that Newman’s standard for determining whether an insider-tipper received a “personal benefit” from disclosing inside information departed from Second Circuit precedent and conflicted with prior Supreme Court decisions, including Dirks v. SEC, 463 U.S. 646 (1983).
On January 26, 2015, the U.S. Securities and Exchange Commission filed an amicus curiae brief in support of the government’s petition. U.S. v. Newman, Case No. 13-1837(L), Doc. No. 291 (2d Cir. January 26, 2015).