On June 24th, the Second Circuit affirmed the insider trading convictions of Raj Rajaratnam. Rajaratnam raised two issues on appeal, whether the wire-tap evidence presented at trial should have been suppressed and whether the insider trading jury instruction was faulty. The Second Circuit held that the alleged misstatements and omissions in the government's wiretap application did not require suppression because the government did not omit information about the SEC investigation of Rajaratnam with "reckless disregard for the truth," and because the alleged misstatements and omissions were not "material." The jury instructions on the use of inside information satisfied the "knowing possession" standard which is the law of the Second Circuit. U.S. v. Rajaratnam. DealBook discussed the implications of the decision.