Just days before former hedge fund portfolio manager Mathew Martoma was charged with insider trading, a panel of insider trading experts was discussing the rise of cases, like Martoma’s, based on so-called expert networks.
That prescient discussion wrapped up a wide-ranging, day-long conference on Nov. 16 at Columbia University Law School, where practitioners, judges, professors and regulators discussed issues in insider trading that remain murky and often contentious 50 years after In The Matter of Cady, Roberts & Co., 40 S.E.C. 907 (1961), the landmark case that created modern insider trading law by holding that a person who obtains non-public information about a company must “disclose or abstain” from trading on it.
