The SEC has dismissed their insider trading lawsuit against Rajat Gupta, according to Bloomberg.
Instead, the SEC will sue him in a NY Federal Court. Gupta said that the SEC case had violated his rights, according to Bloomberg.
Now they’ve both mutually agreed to drop the lawsuits.
For the moment, it looks like Gupta won a major victory, which is a total shocker. It seemed as though the evidence against him was significant.
It seems Gupta got the case dropped by mounting a counter-lawsuit against the SEC. After the SEC sued him, Gupta sued back.
Gupta sued over the SEC’s suing him in an administrative proceeding, thus denying him the right to a jury trial, according to Retuers.
Also at issue was the SEC’s connecting him to the high profile Raj Rajaratnam case, and how the SEC gathered the evidence. Earlier this year, Bloomberg reported that wiretapped calls between Gupta and Raj, in which Gupta tells the Galleon founder confidential information about Goldman considering purchase of AIG and Wachovia back in 2008, were not enough to justify charges.
Looks like going on the offensive paid off.
Of course, who knows what the SEC’s upcoming lawsuit in NY Federal Court will bring.