Gupta Quits Three Boards As Rajaratnam Trial Opens

Mar 8 2011 | 1:44pm ET

As the trial of his friend—in which he is poised to play a big part—opens, former McKinsey & Co. head Rajat Gupta is finding himself with more and more free time.

Gupta, who has been identified as a co-conspirator in the insider-trading case against Galleon Group founder Raj Rajaratnam, but who has not been criminally charged, resigned from three corporate boards yesterday. Gupta left the boards of AMR Corp., the parent of American Airlines, Genpact Ltd. and Harman International Industries.

The resignations bring to five the number of boards of directors Gupta has left since he was first mentioned as a source of insider-information for Rajaratnam. Last year, he left the board of Goldman Sachs—a position, prosecutors and the Securities and Exchange Commission allege, he used to obtain inside information for Rajaratnam. Earlier this month, he resigned from the board of Procter & Gamble, a company about which he is also alleged to have tipped Rajaratnam.

Indian media also speculates that Gupta is likely to resign from the executive board of the Indian School of Business, which he co-founded and serves as chairman.

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