Saturday, 22 October 2016
Last updated 4 hours ago
Apr 21 2014 | 10:43am ET
A federal judge agrees with Rengan Rajaratnam that four of the insider-trading counts against him are flawed. But she’s not ready to let the Galleon Group founder’s younger brother off the hook just yet.
U.S. District Judge Naomi Reice Buchwald on Friday refused to dismiss four securities fraud counts, saying she’d allow prosecutors to decide whether or not to proceed on them. Buchwald, who last month called those counts “very strained,” said Friday that they were “internally inconsistent” with a conspiracy charge against Rajaratnam.
Rajaratnam is set to face trial in June on allegations that he conspired with his brother, Raj, to illegally trade shares of two technology firms. He has denied the allegations and argued that all of the counts against him should be dismissed.