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Insider Ruling Restricting Prosecutions Wrong, U.S. Says

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A federal appeals court ruling that makes it harder to obtain insider-trading convictions was called “dramatically” wrong in the U.S. government’s first formal response to the sweeping decision.

The criticism of last month’s decision was made in a separate case and may indicate the Justice Department’s intention to challenge it. The opinion by a panel of three judges dealt a blow to a multiyear insider-trading probe that netted more than 85 convictions, imperiling a handful of them.