Gupta Won't Testify At Trial

Jun 11 2012 | 1:53am ET

Accused Raj Rajaratnam tipster Rajat Gupta's trial could end this week, but the defendant himself will not take the stand.

Just a day after indicating that the former McKinsey & Co. chief was "highly likely" to testify in his own defense against insider-trading charges, Gupta's top lawyer, Gary Naftalis, told U.S. District Judge Jed Rakoff that they had changed their mind.

"After substantial reflection and consideration, we have determined that Mr. Gupta will not be a witness on his own behalf in the defense case," Naftalis wrote on Saturday, a day after he and his colleagues launched their defense.

The prosecution, which alleges that Gupta passed confidential information about Goldman Sachs and Procter & Gamble—on whose boards he served—to Galleon founder and convicted insider-trader Rajaratnam, rested their case on Friday, following the conclusion of Naftalis' cross-examination of Goldman CEO Lloyd Blankfein. The lawyer showed Blankfein several pieces of evidence that could show that at least some of Gupta's alleged tips were already public knowledge.

Without Gupta, the defense case is expected to consist primarily of character witnesses. Closing arguments could come as soon as tomorrow.

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