Insider Trading Among Family Members and the Limits of 'Newman'

September 6, 2016  |  New York Law Journal

In the closely-followed case of United States v. Sean Stewart, the U.S. Attorney’s Office for the Southern District recently prevailed in its first insider trading trial since the Second Circuit’s landmark decision in United States v. Newman. The Stewart case was a family drama, as the government accused an investment banker of tipping his father about impending deals, and the defendant argued that his father betrayed a son’s trust by trading based on their discussions. In our latest article, we analyze the Stewart case and suggest that Newman has not changed all that much in tipper/tippee cases involving family members.

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