On December 10, the Second Circuit Court of Appeals issued its widely-anticipated decision in the appeal of the insider trading convictions of Todd Newman and Anthony Chiasson. The convictions were among dozens obtained in recent years by Preet Bharara, the United States Attorney for the Southern District of New York, who has made cracking down on insider trading one of his highest priorities. In a decision that sharply rebuked the prosecutorial strategies employed in cracking down on insider trading, the Second Circuit concluded that a higher standard was required to hold individuals liable for insider trading – particularly those individuals removed by several degrees from the original “tipper.” Ruling that the jury instructions given in the Chiasson and Newman cases was flawed, the Second Circuit not only unanimously reversed the convictions, but also dismissed each case with prejudice.