Thursday, April 10, 2014

Rajat Gupta's blunder?

Rajat Gupta's conviction on insider trading charges has been confirmed by a three-judge panel of the appeals court causing yet another blow to his plans to prove his innocence.

The allegation against the former McKinsey chief is that he divulged confidential and price-sensitive information to Raj Rajaratnam of the Galleon Fund. Gupta's lawyers argue, either at his instance or atleast with his approval, that he was furious with Raj Rajaratnam for cheating him in a joint investment fund and therefore he would not have leaked any beneficial information to Rajaratnam. This argument is a curious admission that under normal circumstances Gupta could have leaked price-sensitive information. The defense team has demeaned itself and in the process weakened its case.

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