The SEC has charged 14 defendants at UBS, Morgan Stanley, a handful of hedge funds and elsewhere with insider dealing. The details of the story make fascinating reading - it can be only a matter of time before this story of amateurish tradecraft and escalating greed shows up on TV.
This story has wider significance because of two things.
First of all, it's probably the earliest fruit of the massive data-trawling exercise the SEC embarked on last month. The Boston Herald quotes SEC enforcement chief Linda Thomsen:

"Some defendants may have thought they were flying ’under the radar’ by making modest profits on individual transactions, secure in the knowledge that, over hundreds of tips, they would reap millions of dollars in illicit trading profits,” she said. ”And yet, despite their best efforts to avoid detection, we caught them.”

Lars Toomre predicts that future actions will look at the credit derivatives market - "CDS spreads have been moving too much ahead of unusual corporate events". Gareth Gore covered the issue of insider trading at hedge funds in our December 2006 issue.