By: Economic & Finance Report
The US Supreme Court in the first week of October, will be hearing an important case on insider trading. The case is important because it will limit prosecutors setting out on litigation against hedge fund managers and their hedge funds.
The case that the justices will hear is one of Bassam Salman, an Illinois investor who accumulated $1.2 million dollars from inside trading, because his brother in law had insider trading information on Citigroup Inc clients. Salmon’s brother worked for the Citigroup as well.
In over 20 years the Supreme Court has never once decided an insider trading case, most times cases were handled in lower courts and were defined by the SEC to pursue litigation. This case is one of its kind for the financial regulatory body.
It is noted that the outcome and decision of this particular case could have an enormous effect in the investment and trading community; and better be sure the financial watch dogs will be monitoring the outcome of this definitive case. -SB