US prosecutors have charged 30 individuals with insider trading in a decade-long scheme involving confidential deal data from top law firms. The indictments, filed in Boston federal court, allege that lawyers from prestigious firms like Latham & Watkins, Goodwin Procter, and Wachtell Lipton supplied sensitive information about major transactions, including Cigna’s $54B acquisition of Express Scripts and Johnson & Johnson’s $30B takeover of Actelion. The scheme, uncovered through document management systems, generated tens of millions in illicit profits by exploiting nonpublic market moves.

Nicolo Nourafchan, a Yale Law graduate and former associate at Latham & Watkins, allegedly misappropriated confidential information from document systems and shared it with college friend Robert Yadgarov, who recruited other lawyers to tip off deals. Prosecutors described the network as a bandit-style operation profiting from anticipated market shifts. Nourafchan, who left Latham five years ago, faces charges for his role in leaking details about deals like Anadarko’s $55B Occidental Petroleum acquisition and Tim Hortons’ $11B Burger King buyout.

The implicated firms—though not accused of wrongdoing—have distanced themselves from the scandal. Latham & Watkins and Goodwin Procter emphasized their robust compliance policies, while Wachtell Lipton noted the implicated partner had left the firm four years prior. All three firms are cooperating with the US Attorney’s office, highlighting the legal profession’s vulnerability to reputational damage even when internal controls are bypassed.

This case underscores systemic risks in high-stakes financial dealmaking, where access to privileged information can enable criminal exploitation. With over $140B in combined transaction values at stake, regulators may face pressure to tighten oversight of law firm-client confidentiality protocols and monitor for cross-firm collusion in sensitive deals.