Out from the Shadows: The SEC Succeeds on Shadow Insider Trading Theory
JD Supra: Mergers
APRIL 16, 2024
The Securities and Exchange Commission obtained a victory in a closely-watched trial when a jury found Matthew Panuwat liable for insider trading based on a “shadow trading” theory. The jury’s verdict, as well as increased SEC enforcement under this theory, requires a re-examination of trading behavior and policies when one learns material nonpublic information about another company in the course of employment.
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