2nd Circ. Affirms $11M Hit Against Taro Insider Traders

Law360, New York (June 9, 2011, 4:52 PM EDT) -- The Second Circuit on Thursday upheld $11 million worth of insider trading fines and disgorgement imposed on a convicted ex-Taro Pharmaceuticals Industries Ltd. executive and his family, but discarded more than $700,000 in penalties for unprofitable inside trades.

In a two-part ruling, the appeals court issued a summary order affirming $11 million in disgorgement and penalties for Zvi Rosenthal and his family under Section 21A of the Securities and Exchange Act of 1934 but vacated $720,000 in fines erroneously imposed under Section 21(d)(3).

Rosenthal, former vice...
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