June 6 In a loss for the U.S. Securities and Exchange Commission, a federal jury on Friday found the former chief executive of sTec Inc not liable for trading on inside information ahead of a secondary stock offering.
Manouchehr Moshayedi, a co-founder of the computer storage device company, was cleared of engaging in insider trading on non-public information about a major customer's drop in demand for a key product, enabling him and his brother to reap about $260 million.
The case was one of the largest U.S. insider trading enforcement actions to go to trial. The verdict marked a significant setback for the SEC on the heels of another insider trading trial loss a week earlier in New York. (Reporting by Nate Raymond in New York; Editing by Marguerita Choy)