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Companies often execute confidentiality agreements or nondisclosure agreements for a variety of purposes and fail to consider the implications that such agreements have on insider trading liability. The breach of a confidentiality agreement may be an essential element of the government’s insider trading case. Duties under confidentiality agreements should be centrally tracked and relevant employees should be made aware of such provisions to prevent employees from going astray, either by trading based on material nonpublic (inside) information or disclosing such inside information to another person that trades in securities on that basis in violation of such agreement.