Law360, New York (December 5, 2012, 12:02 PM EST) -- Recently, U.S. District Judge Jed Rakoff threw the government's war on hedge fund insider trading a curveball when he issued an opinion addressing the law of remote tippee liability in the Southern District of New York. The opinion memorialized the court's earlier formulation of jury instructions in the Douglas Whitman insider trading criminal prosecution. It specifically addressed what prosecutors need to show in terms of (1) a remote tippee's understanding of the source and circumstances surrounding the initial transmission of material nonpublic information from a corporate insider to an intermediate tippee, and (2) the nature of the remote tippee's intent to commit fraud....