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2nd Circuit dismisses insider trading case over leaked CMS info


A divided federal appeals court on Dec. 27 threw out insider trading convictions of four defendants, including two former hedge fund partners, over leaks from a U.S. health care agency about planned changes to Medicare reimbursement rates, reports Reuters. In a 2-1 decision, the 2nd U.S. Circuit Court of Appeals dismissed fraud and theft charges, holding that the May 2018 convictions could not stand after a 2020 Supreme Court ruling that clarified when alleged misuse of property triggered federal fraud laws.

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