SEC loses insider trading case against sTec ex-CEO

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In a loss for the U.S. Securities and Exchange Commission, a federal jury on Friday found the former chief executive of sTec not liable for trading on inside information ahead of a secondary stock offering.

DUBLIN, OH - MAY 31: Phil Mickelson hits his tee shot on the second hole during the third round of the Memorial Tournament presented by Nationwide Insurance at Muirfield Village Golf Club on May 31, 2014 in Dublin, Ohio.
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Manouchehr Moshayedi, a co-founder of the computer storage device company, was cleared of engaging in insider trading on non-public information about a major customer's drop in demand for a key product, enabling him and his brother to reap about $260 million.

The case was one of the largest U.S. insider trading enforcement actions to go to trial. The verdict marked a significant setback for the SEC on the heels of another insider trading trial loss a week earlier in New York.

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—By Reuters