Parallel Proceedings: Staying the Civil Action
September 2, 2014
New York Law Journal
On July 8, 2014, Rengan Rajaratnam was found not guilty of federal criminal charges that he took part in an insider trading conspiracy involving a network of hedge fund managers and analysts sharing confidential tips. Rajaratnam’s acquittal was particularly noteworthy because it was the first defeat of federal prosecutors pursuing insider trading convictions in the Southern District of New York after a string of 81 convictions.1 Rengan Rajaratnam’s older brother, Raj Rajaratnam, founder of the hedge fund Galleon Group, was one of those convicted in the crackdown of insider trading activity. He was sentenced to an incarceratory term of 11 years. For the younger Rajaratnam, his liberty was now reassured following a criminal investigation that lasted years. However, Rajaratnam..