Following a contested committal hearing, district judge Caroline Tubbs ruled that former McDermott Will & Emery partner Michael McFall and former Dorsey & Whitney partner Andrew Rimmington should face eight counts of insider trading at Southwark Crown Court.
The case centres around Novartis’ £305m takeover of biotech comapny Neutec in 2006. The prosecution alleges that Neutec finance director King passed inside information about the takeover to McFall, who allegedly passed it on to Rimmington.
King also faces one charge of insider dealing.
McFall is accused of using that information to buy 3,955 shares in Neutec on three separate occasions, and Rimmington is charged with acquiring 6,961 shares in Neutec on three separate occasions.
All three men were remanded on unconditional bail to appear at Southwark Crown Court for a plea and case management hearing on 28 October.
The case represents a rare criminal prosecution by the FSA, which has pledged to crack down on financial crime.
Rimmington is being represented by Barlow Lyde & Gilbert financial services partner Ian Mason, who instructed Richard Lissack QC of Outer Temple Chambers.
McFall is being represented by Kingsley Napley partner Stephen Gentle and barrister Bridget Petherbridge of QEB Hollis Whiteman Chambers.
Sir Ken MacDonald QC of Matrix Chambers, instructed by Irwin Mitchell partner Sarah Wallace, appeared in court on behalf of King.
The FSA prosecution is being led by Michael Bowes QC of Outer Temple Chambers.