Philadelphia partners Mary P. Hansen and William L. Carr authored “Do You Think the Second Circuit’s Decision in United States v. Newman Is a Game Changer for Hedge Funds? Not So Fast.” for the December 2016 edition of The Investment Lawyer.
In recent years, there has been an influx of Department of Justice and Securities and Exchange Commission investigations and allegations of insider trading, many of which involve hedge funds. This article examines the Second Circuit’s ruling in United States v. Newman, as well as the current legal foundations of insider trading claims. Mary and William also explore:
- The government’s burden in insider trading cases;
- Investment adviser and broker-dealer obligations; and
- Best practices for advisers to ensure updated compliance.