Risky Business: Trafficking in Insider Information About Customers
February 24, 2011
The Department of Justice and the SEC have been cracking down on the use of “expert” consulting networks, bringing insider trading charges against network employees, corporate experts and hedge fund managers. In several instances, the government has alleged that corporate “experts” were paid for providing material information about their employer’s suppliers and customers. This update examines federal insider trading law as it relates to tipping information about a company’s business partners.