Federal judge dismisses two insider-trading counts against Rengan Rajaratnam

The only count left against Raj Rajaratnam’s younger brother is one of conspiracy

The troubles for prosecutors in the case of Rajarengan (“Rengan”) Rajaratnam — younger brother of convicted insider trader Raj Rajaratnam — are mounting, as a federal judge dismissed two insider-trading counts through narrowing the definition of what constitutes insider trading.

Since noting the Securities and Exchange Commission’s near-perfect record in insider trading cases since the turn of the century, the 2nd Circuit Court of Appeals has begun requiring a higher standard of proof in these cases since April 2014.

Assistant Editor

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Zach Warren

Zach Warren is Assistant Editor of InsideCounsel magazine, where he oversees online content submissions and administers InsideCounsel's enewsletters. Zach specializes in new media and multimedia...

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