Shearman & Sterling secured another major victory for client Todd Newman, formerly of Diamondback Capital, when the Second Circuit Court of Appeals denied the Government’s Petition for Rehearing and Rehearing En Banc.
In a landmark decision on December 10, 2014, the Second Circuit overturned Mr. Newman’s insider trading conviction with instructions to the District Court to dismiss the indictment against him with prejudice. The Second Circuit’s decision was significant because it clarified the scope of what constitutes insider trading and the successful appeal on behalf of Mr. Newman has already had a major impact on other pending high-profile insider trading cases and has spurred proposed legislation attempting to define insider trading from several members of Congress.
Today’s victory marks another significant hurdle cleared for Mr. Newman. Not only did the Court deny the Government’s petition for rehearing or rehearing en banc, but it did so without dissent.
Following the Court’s decision, counsel for Mr. Newman, Shearman & Sterling partners Stephen Fishbein and John Nathanson, said in a statement: “Today’s decision, without dissent from any member of the Second Circuit, emphatically reaffirms that Todd Newman committed no crime. It is now time for the government to move on and allow an innocent man to continue with his life.”