In a significant turn of events, a federal judge in Chicago has acquitted David Sargent, an environmental lawyer, of insider trading charges. This decision follows the earlier acquittal of Sargent’s co-conspirator, Christopher Klundt, on the exact amounts.
Acquittal Judgment
U.S. District Judge Manish Shah issued the judgment of acquittal for David Sargent, a former faculty member at Loyola University Chicago’s School of Environmental Sustainability. The ruling came on Tuesday, aligning with Sargent’s argument that there was insufficient evidence for a rational jury to conclude his involvement in insider trading.
Legal Perspective
Christopher Grohman, Sargent’s lawyer and a partner at Benesch, expressed Sargent’s satisfaction with the court’s decision. Grohman stated, “Mr. Sargent is pleased that the judge concurred with his argument that there was not enough evidence for a rational jury to conclude that he committed insider trading.”
Prosecution’s Response
A Chicago U.S. Attorney’s Office spokesperson has not yet responded to requests for comments on the acquittal.
Previous Conviction
Sargent had been convicted in mid-January by a federal jury for allegedly using nonpublic information about the earnings of Chegg Inc., an education technology company, to make $110,000 in profit through trades of Chegg stock.
Co-Conspirator’s Acquittal
Interestingly, the same jury acquitted Christopher Klundt, a former Chegg manager accused of tipping off Sargent before the earnings news became public. This raised questions about the consistency of the evidence, charges, and jury instructions in Sargent’s conviction and Klundt’s acquittal.
Asserting Innocence
Throughout the eight-day trial, both Sargent and Klundt consistently maintained their innocence. Sargent argued that his conviction and Klundt’s acquittal were grounded in the same evidence and charges.
Professional and Financial Impact
According to Grohman, Sargent, who has faced significant financial and professional hardship due to the case, looks forward to putting this chapter behind him. The United States v. Klundt case occurred in the U.S. District Court for the Northern District of Illinois under docket number 1:22-cr-00015.