The Impact of Salman v. United States on Downstream Tippee Prosecutions
November 8, 2017 | The Review of Securities & Commodities Regulation
In Salman v. United States, the Supreme Court held that a tipper receives a personal benefit sufficient to establish illegal insider trading when the tipper makes a gift of confidential information to a trading relative or friend. Salman did not address, however, the question of what level of knowledge a downstream tippee must possess of the personal benefit the tipper received in order to be held liable for insider trading. In this article, we address how district courts have analyzed the question of what downstream tippees must know to be held liable for insider trading after Salman and Salman’s continued impact on this question going forward.
The Impact of Salman v. United States on Downstream Tippee Prosecutions (pdf | 418.33 KB)