Supreme Court Decision Expands Reach of Whistleblower Rewards for Insider Trading

Good news for insider trading whistleblowers. The U.S. Supreme Court issued a unanimous ruling today in the case of Salman v. United States. The Court’s decision trashed a decision previously issued by the U.S. Second Circuit Court of Appeal in the case of United States v. Newman. In that case the court found that proof of an actual quid pro quo was required in order for the Securities and Exchange Commission to successfully prosecute insider trading. The Supreme Court recognized that the benefit from providing insider information exists even when money does not change hands directly.

A copy of the Court’s decision is available at here.