Rajaratnam Trial And Gupta Charges Expected to Incite Lawsuits Against Goldman, McKinsey, AMD, Intel

The Government’s investigation of high level insider trading and resulting damage to the reputations of Goldman Sachs, McKinsey and Intel among others, is expected to result in a spate of separate lawsuits, especially after the details of the alleged wrongdoing emerges at the trial of Galleon Group founder Rah Rajaratnam starting tomorrow. Rajaratnam is charged with trading on tips from sources inside these companies and others including IBM and Moody’s. The companies where the leaks came from may see themselves in court explaining how the tips occurred and whether those leaks were intentional and directed to favored traders to alter the share price for the benefit of some but not all. Evidence in the upcoming trial will come from former Intel employee Rajiv Goel and ex-McKinsey director Anil Kumar concerning tips to Rajaratnam. Goel and Kumar pleaded guilty and are helping the prosecution.