Fund Managers in Landmark Insider Ruling Cleared by U.S. Judge

A federal judge exonerated Level Global Investors LP co-founder Anthony Chiasson and ex-Diamondback Capital Management LLC portfolio manager Todd Newman, who were convicted of insider trading only to have their verdicts thrown out by a federal appeals court.

The decision by the U.S. Court of Appeals earlier this year held that prosecutors had failed to prove the men knew who the original source of the tip was or whether they received any benefit for leaking it.

The decision made it harder for prosecutors to win insider trading cases and triggered a wave of challenges to insider trading convictions.

Prosecutors said they haven’t decided yet whether to seek an appeal to the U.S. Supreme Court.

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