2nd Circ. Shoots Down Goldman Investor's Gupta Suit

Law360, New York (April 5, 2013, 7:45 PM EDT) -- The Second Circuit refused Friday to revive an investor lawsuit seeking to force former Goldman Sachs Group Inc. director Rajat Gupta to pay for passing insider tips to friend Raj Rajaratnam, finding the investor had not shown Gupta was a “beneficial owner” of Goldman shares.

A three-judge panel said investor James Mercer could not collect any profits “realized” by Gupta from Rajaratnam's short-swing trading of Goldman shares through Rajaratnam's Galleon Group LLC hedge fund. Under securities law, an insider can realize profit in shares they do...
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