Despite withdrawing its complaint against the former Goldman Sachs board member and McKinsey & Co. leader, the SEC retained the right to file charges against Gupta in a federal court, The Washington Post reported Thursday.
Gupta had sued the agency, arguing it violated his rights by filing the case in an administrative court instead of the federal court system, where he would have more legal protections and the right to a trial by jury.
The SEC accused Gupta of leaking secrets to hedge fund billionaire Raj Rajaratnam and filed its case against Gupta shortly before Rajaratnam went on trial this year.
The SEC staff "is fully committed to the case and will proceed as appropriate," spokesman John Nester said after the agency announced it was withdrawing its complaint Thursday.
One of Gupta's attorneys, Gary P. Naftalis, said the SEC's allegations against Gupta "are totally baseless and cannot withstand scrutiny."