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Legal Update

Salman v. United States: Supreme Court Considers Heightened Personal Benefit Standard for Tipper/Tippee Insider Trading Liability

5 October 2016
Mayer Brown Legal Update

Today the United States Supreme Court is hearing argument in Salman v. United States, one of the most closely watched insider trading cases to reach the high court in recent years. Salman could resolve a circuit split between the Second and Ninth Circuits and clarify generally what constitutes a personal benefit to the insider sufficient to establish insider trading under the longstanding tipper-tippee framework set forth in Dirks v. SEC, 463 U.S. 646 (1983). The personal benefit requirement is the line defining when a tippee trading on material, nonpublic information commits securities fraud. For that reason, lawyers and securities professionals alike hope that the Court’s decision in Salman will clarify the nature and type of personal benefit that must be shown in insider trading cases. This Legal Update discusses the history of tipper/tippee decisions leading up to Salman and the impact of the Court’s consideration of this case.


  • Matthew Rossi
    T +1 202 263 3374
  • Joseph De Simone
    T +1 212 506 2559
  • Richard M. Rosenfeld
    T +1 212 506 2178
  • Brantley Webb
    T +1 202 263 3188
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