Insider Trading Claims Against Tellabs CEO Tossed

Law360, New York (May 27, 2008, 12:00 AM EDT) -- Tellabs Inc. CEO Michael Birck is now off the hook in the ongoing securities suit against the technology company, after a federal judge ruled that claims that Birck engaged in illegal insider trading did not meet federal standards of liability.

The U.S. District Court for the Northern District of Illinois agreed with Tellabs' argument that liability needed to be based on a violation that involved insider trading, rather than just any predicate violation of the Securities Act.

“A defendant may be liable under [laws governing insider...
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