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M&A lawyer charged in $32m insider trading scheme

An attorney and a trader were charged on Wednesday in a $32m insider trading scheme involving information about corporate mergers allegedly obtained from three prominent US law firms.

Federal prosecutors filed charges in a New Jersey federal court against Matthew Kluger, a former senior associate at Wilson Sonsini Goodrich & Rosati, and Garrett Bauer, a trader who worked at several proprietary trading firms, over the alleged scheme.

Mr Kluger allegedly stole confidential information from Wilson Sonsini about deals involving companies including Oracle, Sun Microsystems, McAfee and 3Com, and passed tips to Mr Bauer through a third, unnamed co-conspirator with instructions on how many shares to buy, according to the Federal Bureau of Investigation’s complaint.

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