On September 9th, the Second Circuit addressed a securities fraud conviction based on the misappropriation theory of insider trading holding that the defendant, a "tipper," could claim that he lacked the requisite intent to commit securities fraud. In defining the nature of his relationship with the "tippee," defendant could use language found in Rule 10b5-2, claiming that the exchange of information was based on a past pattern and history of sharing confidences such that the tipper expected the tippee to keep the information private. Because the trial court gave an instruction that was substantially similar to the one that the defendant requested, the defendant suffered no prejudice and the conviction was affirmed. U.S. v. Gansman.