Insider-Trading Prosecutions Backed by U.S. Supreme Court
- Ruling makes it easier to bring cases against some people
- Court rules in first insider-trading case in two decades
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The U.S. Supreme Court upheld a California insider-trading conviction in a ruling that will make it easier for prosecutors to bring cases against some people on Wall Street and in other parts of the country.
Ruling in its first insider-trading case in two decades, the justices unanimously said that people can be sent to prison for making trades even when the insider who provided the tip wasn’t trying to make money. The court said it’s enough if the insider gave the information as a gift to someone likely to trade on it.