2nd Circ.'s Broad View Of Insider Trader's Civil Liability

Law360, New York (February 27, 2014, 6:40 PM EST) -- On Feb. 18, 2014, in U.S. Securities and Exchange Commission v. Contorinis,[1] the Court of Appeals for the Second Circuit affirmed an order requiring Joseph Contorinis to personally disgorge more than $7 million in insider trading profits realized by a fund he co-managed, even though he did not personally receive those profits. In doing so, the court continued its expansive reading of civil liability for insider trading.

The Second Circuit’s broad view of civil disgorgement follows an earlier opinion in which the court adopted a similarly...
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