Friday, July 9, 2010

Lawyer and Law Firm Insider Trading News

Recall several law firm insider trading scandals mentioned previously. In the case of Ropes & Gray, the associate that: "...accessed the firm's computer network and viewed confidential deal documents on 3Com Corp. and other clients and passed the information on..." just reached an agreement with the SEC.

As part of the plea agreement, the lawyer will return illicit profits, pay a significant penalty, and agree to a ban on future appearance as a lawyer before the SEC. The lawyer in question is also cooperating with investigators in the criminal charges brought against other involved lawyers.

This example highlights the importance of strong confidentiality protections and screens within law firms. While no system can prevent coordinated malfeasance, these measures may have saved at least one firm unwanted public attention...

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