''Salman v. United States'', 580 U.S. ___ (2016), was a
United States Supreme Court
The Supreme Court of the United States (SCOTUS) is the highest court in the federal judiciary of the United States. It has ultimate appellate jurisdiction over all U.S. federal court cases, and over state court cases that involve a point o ...
case in which the Court held that gifts of confidential information without any compensation to relatives for the purposes of
insider trading
Insider trading is the trading of a public company's stock or other securities (such as bonds or stock options) based on material, nonpublic information about the company. In various countries, some kinds of trading based on insider information ...
are a violation of securities laws.
The Court relied on its decision in , which held that "that a tippee is exposed to liability for trading on inside information only if the tippee participates in a breach of the tipper's fiduciary duty."
[''Salman v. United States'']
No. 15–628
580 U.S. ____ (2016).
Background
A jury convicted Bassam Yacoub Salman of
securities fraud
Securities fraud, also known as stock fraud and investment fraud, is a deceptive practice in the stock or commodities markets that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in los ...
and U.S. District Judge
Edward M. Chen
Edward Milton Chen (born January 20, 1953) is a Senior United States district judge of the United States District Court for the Northern District of California and former United States magistrate judge of the same court.
Early life and educati ...
then denied Salman's motion for a new trial. On July 6, 2015, the
United States Court of Appeals for the Ninth Circuit
The United States Court of Appeals for the Ninth Circuit (in case citations, 9th Cir.) is the U.S. federal court of appeals that has appellate jurisdiction over the U.S. district courts in the following federal judicial districts:
* District ...
affirmed the conviction, in which Judge
Jed S. Rakoff
Jed Saul Rakoff (born August 1, 1943) is a Senior United States district judge of the United States District Court for the Southern District of New York.
Education
Rakoff was born in Philadelphia, Pennsylvania on August 1, 1943. He grew up in ...
was joined by Judges
Morgan Christen
Morgan Brenda Christen (born December 5, 1961) is an American lawyer and jurist who serves as a U.S. circuit judge of the U.S. Court of Appeals for the Ninth Circuit. She previously served as a state court judge on the Alaska Supreme Court from ...
and
Paul J. Watford
Paul Jeffrey Watford (born August 25, 1967) is an American lawyer serving as a United States circuit judge of the United States Court of Appeals for the Ninth Circuit since 2012. In February 2016, ''The New York Times'' identified Watford as a po ...
.
On October 5, 2016, oral arguments were heard, where Deputy Solicitor General
Michael Dreeben
Michael R. Dreeben (born 1954) is a former Deputy Solicitor General who was in charge of the U.S. Department of Justice criminal docket before the United States Supreme Court. He is recognized as an expert in U.S. criminal law.
Dreeben had a le ...
appeared for the government.
Opinion of the Court
On December 6, 2016, the Supreme Court delivered judgment in favor of the government, voting unanimously to affirm the lower court.
Justice
Justice, in its broadest sense, is the principle that people receive that which they deserve, with the interpretation of what then constitutes "deserving" being impacted upon by numerous fields, with many differing viewpoints and perspective ...
Samuel Alito
Samuel Anthony Alito Jr. ( ; born April 1, 1950) is an American lawyer and jurist who serves as an associate justice of the Supreme Court of the United States. He was nominated by President George W. Bush on October 31, 2005, and has served ...
authored the opinion of the Court.
[''The Supreme Court, 2016 Term — Leading Cases'']
131 Harv. L. Rev. 383 (2017).
References
Further reading
*
External links
*
SCOTUSblog coverage
United States Supreme Court cases
United States Supreme Court cases of the Roberts Court
2016 in United States case law
United States securities case law
Insider trading
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