Shapiro Arato Opposes Petition for Rehearing of Newman And Receives Strong Support From Prominent Amici Curiae

On February 19, 2015, Shapiro Arato LLP filed a brief in the United States Court of Appeals for the Second Circuit opposing the government’s petition for a rehearing of United States v. Newman, 773 F.3d 438 (2d Cir. 2014).  (Additional information about our successful representation of Anthony Chiasson in the Newman case is available here and here).

The government did not challenge the Court’s core holding that an alleged tippee cannot be convicted of insider trading unless he knew that a corporate insider had disclosed that information for a personal benefit.  Instead, it asked the Court to reconsider its definition of “personal benefit” and its holdings that the evidence at trial was insufficient to sustain a conviction.  Our opposition explains, among other things, that the Second Circuit’s definition of personal benefit, as well as its analysis of the evidence, was fully consistent with its own precedents and the United States Supreme Court’s decision in Dirks v. SEC, 463 U.S. 646 (1983).

Prominent amici curiae voiced strong support for Mr. Chiasson’s arguments by filing three separate briefs that also opposed the government’s petition.  These briefs were submitted by law professors Stephen Bainbridge of UCLA School of Law, M. Todd Henderson of the University of Chicago Law School, and Jonathan Macey of Yale Law School; the National Association of Criminal Defense Lawyers and the New York Council of Defense Lawyers; and businessman and investor Mark Cuban.

Alexandra Shapiro, Daniel O’Neill and Jeremy Licht co-authored Mr. Chiasson’s opposition to the government’s petition, with co-counsel from other firms.

Mr. Chiasson’s opposition to the government’s petition can be found here.  The amicus curiae briefs supporting Mr. Chiasson’s opposition, and opposing the government’s petition, can be found here, here and here.