On Wednesday, the U.S. Supreme Court will hear argument in Salman v. United States, one of the most important insider trading cases before the court in decades. In Salman, the court is expected to address the scope of "tippee liability," which ariseswhen a corporate insider tips material, non-public information to a third party,who then trades on that information. In those cases, among other things, the government must prove that the tipper received a "personal benefit'' in exchange for the tip. In the last two years, a split inthe circuits has developed in interpreting the ''personal benefit," which government attorneys, defense lawyers and securities professionals hope the court will now resolve in Salman.
This article orgininally appeared in Los Angeles Daily Journal