A federal judge threw out two insider trading charges on Tuesday against Raj Rajaratnam on its third week trial at the Manhattan-based federal court.
The court ruling came after the government puts the case against Rajaratnam to rest. It also means the jury may only consider one last conspiracy count against him. The court ruling, enforced by the U.S. District Judge Naomi Buchwald, won’t be appealed.
The charges that were dismissed prompted a significant turn in a litigation that is slowly being trimmed down. Rajaratnam was initially indicted in the previous year on several insider trading charges.
Rajaratnam was accused of trading private information in relation to a broadband firm, Clearwire Corp., and chip manufacturer, Advanced Micro Devices Inc., a few years back after his brother tipped him. The claimed scheme generated close to $1 million in profits.
Prosecutors argued they’re only required to show people who utilized private information knew it was already revealed in breach of fiduciary duty.
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