[ by Melanie Gretchen ] Rajat Gupta will not testify at his insider trading trial, according to a letter from his lawyers that was filed with the court on Sunday.  The decision by the former Goldman Sachs director's lawyers is a change of course, after lead lawyer Gary Naftalis stated on Friday that it was "highly likely" his client would testify in his own defense next week. New Direction. The letter by Mr. Naftalis revealed deliberation on the issue: "We have the spent the last day reviewing what we believe we need to present in the defense case.  After substantial reflection and consideration, we have determined that Mr. Gupta will not be a witness on his own behalf in the defense case."

[CI Note: No legal strategy or explanation accompanied the decision not to have Mr. Gupta testify.  was provided with regards to the decision.]

Mr. Gupta, who was also a former head of the consulting firm McKinsey & Company, is accused by the government of leaking boardroom secrets about Goldman and Procter & Gamble to his friend and business associate Raj Rajaratnam.  Last year, a jury convicted Rajaratnam, the former head of the Galleon Group hedge fund, with insider trading.

[CI Note: A reader responding to Dealbook's Peter Lattman's article on the trial stressed that Mr. Gupta is innocent until proven guilty, i.e. just having known Rajaratnam, who currently serving 11 years in prison, isn't going to close prosecution's case.]

Pros and Cons of Testifying. Factoring into the defense's decision include:

Pro: When a defendant testifies in his own case, the jury’s focus often shifts from the government evidence to the credibility of Mr. Gupta.  His reputation and successful  business career could have worked in his favor if he would have been able to explain away the substantial circumstantial evidence against him.

Cons. However, focus on Mr. Gupta could have also backfired if something went wrong on the witness stand and the former director said something incriminating.

An End in Sight. Last week, Mr. Naftalis promised Judge Jed Rakoff that if the defense decided that Mr. Gupta was not going take the stand, he would immediately inform the prosecutors.  As of Friday, the government rested its case after 12 days of testimony from 20 witnesses. The trial enters its fourth and presumably final week today in Federal District Court in Manhattan.  Closing statements could start as soon as Tuesday. For further details, go to [Dealbook, 6/10/12].