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SEC loses insider trading case against sTec ex-CEO

Photo: Bryce Duffy|Stone Sub|Getty Images

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.

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.

Read MoreSEC chief wants to see changes in trading

—By Reuters

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