Just in time for the annual season of work holiday parties and family gatherings, the United States Supreme Court unanimously confirmed that leaking material non-public information to a close relative who then trades in securities can put both of you at risk, even if the relative does not repay you for the tip. On December 6, 2016, in Salman v. United States, the Court held that a tipper’s gift of confidential, inside information to his brother constituted a sufficient personal benefit to support an insider trading conviction of the brother’s friend (who had also married the tipper’s sister), without additional proof that the tipper received money, property, or something of tangible value in exchange for the tip. Although the opinion was narrowly decided, its reasoning is consistent with prior Supreme Court statements and seems likely to extend beyond relatives at least to include cases involving close friends.

The Salman decision provides us an opportunity, once again, to remind wellmeaning directors, executives, lawyers, consultants, and others privy to confidential business developments of just how important it is to talk about something else during the holidays.