Morvillo Abramowitz Partner Jonathan Sack Quoted in Bloomberg BNA


NEW YORK, October 26, 2015 – Morvillo Abramowitz partner Jonathan Sack was quoted in a Bloomberg BNA article, “Does Dismissal Signal Death Knell for Insider Trading Cases?” On the topic of United States v. Newman, where the Second Circuit held that the tippee — the person trading on the inside information — must know that the tipper disclosed the non-public information in exchange for a personal benefit, and that such “benefit” must be of consequence, Jon stated, “the recent dismissals confirm that the prosecution of downstream tippees many levels removed from the original source has become significantly more difficult for the government following Newman. I would also expect to see increased litigation around ‘benefit.’” Jon also stated, “Generally, I’d expect Newman likely to lead to fewer insider trading cases in the near term. But the number of such prosecutions was likely to go down in any event as recent cases were resolved, and compliance systems have responded to increased regulatory and prosecutorial scrutiny.”