Richards Kibbe & Orbe partner Lee S. Richards III discussed the Litvak retrial in Law360's article "2nd Circ.'s Litvak Reversal Has Silver Lining For Prosecutors." After the second circuit ordered a retrial on the securities fraud charges against bond trader Jesse Litvak, the defendants have a better chance to make their case.
According to Mr. Richards, "Experts can make the point that traders use sophisticated valuation models, not market chatter, to make purchase and sale decisions." He also said that the retrial gives the defendants the opportunity to argue that they believed in good faith that they weren't doing anything illegal because the trading techniques were widespread and commonly used.
It is expected that the outcome will be closer in the new trial. "The Litvak decision makes cases like the one against Mr. Litvak much more of a horse race," Mr. Richards said.
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