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(Beyond) Family Ties: Remote Tippees In A Post-Salman Era, Austin J. Green

Fordham Law Review

In Salman v. United States, the U.S. Supreme Court reaffirmed Dirks v. SEC, holding that a personal benefit may be inferred where an insider discloses material nonpublic information to a “trading relative or friend.” While the decision was viewed as a win for prosecutors, the Court’s limited holding did little to address issues pertaining to more complex tipping chains, such as those raised by the Second Circuit’s decision in United States v. Newman two years prior. Particularly, a remote tippee cannot always determine whether material nonpublic information was improperly disclosed at the time of receipt. Such a remote …