Reported by Rachel Graf

The US Securities and Exchange Commission won a jury verdict in its ground-breaking insider-trading case that sought to bar employees from using non-public information about their own company to place bets on rival stocks.

The closely watched San Francisco civil trial was the regulator’s first enforcement action targeting so-called shadow trading, a widespread phenomenon that researchers say has gone largely unchecked.

The SEC argued that former Medivation Inc. executive Matthew Panuwat broke the law when he invested more than $117,000, or almost half of his annual salary, on call options in rival Incyte Corp. just seven minutes after receiving an August 2016 email from the CEO at Medivation saying Pfizer Inc. was interested in acquiring it.

Read full report: https://www.bloomberg.com/news/articles/2024-04-05/sec-wins-novel-shadow-insider-trading-trial-against-executive