Does Dismissal Signal Death Knell for Insider Trading Cases?

U.S. Attorney Preet Bharara’s dogged pursuit of insider trading cases over the past decade has been a boon for elite white collar litigators. But in the aftermath of a recent ruling significantly limiting liability, insider trading prosecutions are dropping like flies. Last week, the U.S. dismissed its case against former SAC Capital Advisors LP fund manager Michael Steinberg and abandoned charges against six cooperators who’d previously pled guilty.

Is it the end of an era?

“You can be certain this is not the end of prosecutions for insider trading,” says Charles Stillman of Ballard Spahr. “But prosecutors are going to ...