Covington & Burling Discusses the STOCK Act Opening Up a New Front for Insider Trading Cases

The Securities and Exchange Commission has opened what the Washington Post calls a “new front” in its “escalating … crackdown on insider trading.” At the center of this new front are entities that trade securities based on government information. Unless they are careful, lobbying or consulting firms that obtain non-public government information and clients of those firms may find themselves in the middle of this crackdown. In this advisory, we summarize the insider trading provisions of the Stop Trading On Congressional Knowledge Act (the “STOCK Act”), explain why these restrictions matter to those outside of government, and offer guidelines for … Read more

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