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
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