Attorneys for two former hedge fund employees convicted on charges of securities and wire fraud have petitioned for an en banc rehearing of a divided Manhattan appeals court ruling that, they said, dramatically expanded the reach of federal criminal statutes and “upended” decades of settled insider-trading law.
In a filing with the U.S. Court of Appeals for the Second Circuit, attorneys from Munger, Tolles & Olson; Allen & Overy; Shapiro Arato Bach; and Kramer Levin Naftalis & Frankel argued that the panel decision defied U.S. Supreme Court precedent and raised issues of “exceptional importance” that warranted review by the full bench of the appellate court.
