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Accused insider quits CT firm’s board

Rajat Gupta, the former McKinsey head accused of passing insider tips to Galleon Group’s billionaire hedge fund manager Raj Rajaratnam, has resigned from three corporate boards, including Stamford auto-home stereo-video maker Harman International Industries, The Times of India reports.

In a filing to US market regulator Securities and Exchange Commission, AMR Corp, the parent company of American Airlines, also said that 62-year old Gupta “voluntarily resigned” from the boards of AMR and its subsidiary, American Airlines, effective immediately, the newspaper said in its online edition.

The ex-director of Goldman Sachs also resigned from the board of outsourcing company Genpact Ltd, according to a separate regulatory filing.

Gupta notified Genpact of his resignation as non-executive chairman of the board of directors and as a member of the board of directors, the filing said.

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The company received his formal resignation letter today. Prior to his resignation, Gupta had also served as a member of the board’s nominating and governance committee.

Last week, the alumnus of the Indian Institute of Technology, Harvard Business School and MIT resigned as a director of Procter & Gamble.

The SEC had last week accused Gupta of insider trading, alleging that he passed information to Rajaratnam on companies including Goldman Sachs and Procter & Gamble.

The Indian-American is also accused of sharing information with Rajaratnam about a USD 5 billion investment by Warren Buffett-led Berkshire Hathaway in Goldman in 2008.

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Rajaratnam goes on trial in New York on Tuesday on charges of insider trading.

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