Lawyer And Trader Accused In major Insider Trading Case
Attorney Matthew Kluger and trader Garrett Bauer have been accused by federal prosecutors of running a l7-year conspiracy to trade on corporate merger secrets stolen from three of the nation’s most influential law firms, in one of the largest U.S. insider trading cases on record.
Prosecutors accused the two men of reaping more than $32.2 million by trading on tips about upcoming mergers and acquisitions that Kluger learned as a lawyer at Wilson Sonsini Goodrich & Rosati, a preeminent firm that represents several Silicon Valley tech companies.
Prosecutors allege that Kluger also regularly leaked information he had learned when he worked at two other law firms, Cravath Swaine & Moore and Skadden, Arps, Slate, Meagher & Flom, prosecutors.
The charges come amid a broad government crackdown on insider trading, including the criminal trial of Galleon Group hedge fund founder Raj Rajaratnam and recent charges that a U.S. Food and Drug Administration chemist traded on insider information about drug approvals.
Phil Robertson, Editor
