On April 27, David Riley, a former executive of Foundry Networks, Inc., was sentenced to 78 months in prison for insider trading.  The insider trading scheme, as part of which Riley passed inside information about an acquisition and about earnings results to a hedge fund analyst, yielded $39 million in ill-gotten gains.  Riley’s sentencing followed the denial of his motion for a judgment of acquittal, in which he had argued that that, in light of the Second Circuit’s Newman decision, the trial court had erred in instructing the jury that “just maintaining or furthering a friendship” could constitute a benefit under insider trading law.  Judge Valerie Caproni of the Southern District of New York ruled that the Second Circuit had not held such an instruction to be per se improper, adding that, in any case, prosecutors had proven that the trader gave Riley at least three concrete personal benefits.  United States v. Riley, 13-cr-339 (S.D.N.Y.).  DOJ Press Release