Law360 Quotes Terence Lynam on 2nd Circuit Appeal Pertaining to Newman Decision
Akin Gump litigation partner Terence Lynam has been quoted in the Law360 story “Newman Doesn’t Spell Doom For Tipping Cases” discussing a ruling by the U.S. Court of Appeals for the 2nd Circuit, which said that the defendant in an insider trading case had relied too heavily on the now-landmark ruling in U.S. v. Newman.
In that earlier December 2014 decision, the court said prosecutors must show that tippers in insider trading cases get a significant personal benefit for passing on confidential information, and the people they tip must know of the exchange. As the article notes, the court also said it cannot be enough to say a tipper was simply hoping to enhance a personal friendship.
In the latest case, U.S. v. Riley, in which the defendant was appealing a six-and-a-half-year prison sentence for allegedly tipping off a hedge fund analyst about an upcoming $3 billion deal, the court said David Riley had mistakenly tried to rely on Newman when he claimed prosecutors had failed to meet the standards the court laid out for proving insider trading between tippers and tippees.
Lynam said, “This is further clarification in an incremental way. It’s furthering the saga of Newman, and it illuminates what Newman is all about.”