Former Goldman director sues SEC

Former Goldman Sachs director Rajat Gupta has sued the US Securities and Exchange Commission (SEC).

In a civil law suit, the SEC had accused Mr Gupta of revealing corporate information to hedge fund manager Raj Rajaratnam.

Court papers said Mr Gupta “stands ready to mount a defence against each and every one of the commission’s charges”.

Mr Gupta felt he had not been granted his “statutory and due process rights”.

Attorney Gary Naftalis said in the court papers that the SEC had launched a “flawed case premised in large part on unreliable evidence being used in an attempt to bring down a man of sterling reputation and remarkable achievements without the procedural safeguards historically accorded to all persons similarly charged”.

A civil lawsuit deprived him of his right to a judge and jury, he argued.

Mr Rajaratnam, founder of the Galleon hedge fund, is accused of insider trading.

Both men deny any wrongdoing.