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In a unanimous decision, the U.S. Supreme Court has taken a strong stance in favor of protecting investors and the integrity of public markets against insider trading. In its decision, authored by Justice Samuel Alito, the Supreme Court upheld a criminal conviction for trading on confidential inside information received second-hand from a relative of the tipper.
The U.S. Supreme Court this week charted a middle course after agreeing to consider a case in which corporate petitioners had asked the court to greatly shrink protections offered investors under federal securities law. Sound familiar? It should.