Shearman & Sterling achieved a ground-breaking victory for its client, Todd Newman, formerly of Diamondback Capital, when the Second Circuit Court of Appeals overturned Mr. Newman’s insider trading conviction with instructions to dismiss the indictment against him with prejudice. The Court similarly overturned the conviction of Anthony Chiasson, Mr. Newman’s co-defendant.
This victory is significant because it narrows the scope of what constitutes insider trading and this successful appeal on behalf of Mr. Newman will likely have a major impact on other pending high-profile insider trading cases.
Counsel for Mr. Newman, Shearman & Sterling partners Stephen Fishbein and John Nathanson, issued the following statement.
“We are relieved but not surprised by today’s decision, which clearly establishes Todd Newman’s innocence on all charges. This is not a mere technicality, but rather a considered judgment that Mr. Newman did not commit a crime. Unfortunately, this vindication comes after four years of unnecessary prosecution including a trial in which the Second Circuit held that the wrong legal standard was applied. We are gratified that, going forward, others will benefit from clearer rules in this area.”
In addition to Fishbein and Nathanson, the Shearman & Sterling team included counsel Mark Lanpher and associates Jason Swergold, Andrew Lipson, Michael Steinke and Zach Torres-Fowler.