Credit: Art_Photo/Adobe Stock Out of the Shadows: SEC Test Case To Bring 'Shadow Trading' Into Light
The SEC is now at trial in an enforcement action against former biopharma executive Matthew Panuwat related to "shadow trading" activities. The trial will not only be the first major test of the SEC's "shadow trading" legal theory before a jury, but will also have significant ramifications for in-house counsel and compliance teams on how to train their employees on trading practices.
March 29, 2024 at 10:00 AM
9 minute read
The U.S. Securities and Exchange Commission (SEC) is now at trial in an enforcement action against former biopharmaceutical executive Matthew Panuwat, related to so-called "shadow trading" activities. Panuwat allegedly purchased call options in biopharmaceutical company Incyte a mere seven minutes after learning that his own employer, Medivation, expected to be acquired by Pfizer. When Medivation announced its acquisition, Incyte's stock price jumped approximately 8%, netting Panuwat about $107,000 in profit.
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