From Businessweek: A Goldman Sachs investor’s lawsuit
seeking disgorgement of insider-trading profit from former board member Rajat
Gupta was dismissed by a Manhattan federal judge. U.S. District Judge Jed Rakoff said in an
opinion filed today that the investor, James Mercer, failed to adequately
allege that Gupta received quid-pro-quo payments for tips he provided to
Galleon Group LLC co-founder Raj Rajaratnam.
Gupta, who was also a managing partner of McKinsey Co. and a
director at Procter & Gamble Co. (PG) (PG), was convicted in June of
securities fraud and conspiracy for tipping Rajaratnam, who is serving an
11-year prison term for crimes related to insider trading. However, Mercer’s assumption that Gupta received
payments “is far too speculative to survive dismissal,” Judge Rakoff wrote ….
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