The defence has begun in the Galleon insider trading case, with Raj Rajaratnam’s lawyers arguing that he traded on public information.
The defence also attempted to portray Galleon as a ‘tightly run ship’ with strict procedures and diligent analysts, according to the Wall Street Journal.
A New York federal court heard testimony from lawyers and Rick Schutte, Galleon’s former president of US operations, who testified that Galleon’s research analysts arrived at work by 7.00 am every day to ‘digest research reports and news articles in anticipation of its morning meeting at 8.30 am,’ reports the paper. Shutte added that Rajaratnam fined analysts $25 for being late to the meeting.
At the morning meetings, which could include as many as 60 people, analysts were expected to justify their stock recommendations before the markets opened, the court was told. Shutte said Galleon’s analysts were ‘methodical’ in their research process, as was Rajaratnam.