Kelly Woodruff’s success as a trial lawyer and appellate advocate makes her a go-to litigator for large, complex commercial litigation, at all phases of a case. Clients come to Ms. Woodruff for practical, creative and efficient resolution of all types of business disputes, class actions and trusts and estates litigation. In almost 25 years of practice, Ms. Woodruff has been the lead attorney in dozens of trials and appeals.

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On December 6, 2016, after nearly twenty years of silence on insider trading, the U.S. Supreme Court unanimously affirmed the Ninth Circuit in holding that prosecutors need not show that a tipster received a pecuniary or other tangible benefit for providing inside information where the insider and trader are close friends or relatives. Salman v. United States, U.S. Supreme Court Case No. 15-628.

Salman was convicted for trading on information received from his friend, Michael Kara, who had in turn received the information from his brother and Salman’s brother-in-law, Maher Kara, a former Citigroup investment banker. Although Salman was not the insider, he was convicted based on so-called “tippee liability,” where the insider discloses nonpublic information to an outsider (a “tippee”) who then trades on the basis of the information, as established by the Supreme Court in its landmark Dirks decision. Dirks v. S.E.C., 463 U.S. 646 (1983).  Under Dirks, a tippee can be liable for insider trading provided the insider received a “personal benefit” from tipping the information, which benefit may be inferred where the tipper receives something of value in exchange for the tip or “makes a gift of confidential information to a trading relative or friend.”

Continue Reading Insider Trading Conviction in First Insider Trading Case in Nearly Two Decades Affirmed by Supreme Court