Ex-Goldman director Gupta lawsuit vs SEC narrowed

Reuters News
Posted: Jul 11, 2011 12:58 PM
Ex-Goldman director Gupta lawsuit vs SEC narrowed

NEW YORK (Reuters) - A federal judge narrowed a lawsuit by Goldman Sachs Group Inc director Rajat Gupta that accuses the U.S. Securities and Exchange Commission of depriving him of his right to a jury trial in a case related to insider trading.

U.S. District Judge Jed Rakoff directed that Gupta's lawsuit be limited to his equal protection claim, which is tied to the former director's argument that the SEC singled him out by bringing its case. Rakoff ordered that Gupta's lawsuit proceed on an expedited basis.

Gupta is fighting civil charges that he tipped former hedge fund billionaire Raj Rajaratnam about Goldman's results and a critical $5 billion investment from Warren Buffett's Berkshire Hathaway Inc at the height of the 2008 financial crisis.

An SEC spokesman had no immediate comment.

(Reporting by Jonathan Stempel; Editing by Tim Dobbyn)