An executive bought a rival's stock. Insider trading, says SEC
Mint Mumbai|February 22, 2024
Defense lawyers say the case is the first to involve "shadow insider trading"
Dave Michaels
An executive bought a rival's stock. Insider trading, says SEC

Biotech executive Matthew Panuwat bought options on another drug company's stock and earned a windfall of $120,000.

The Securities and Exchange Commission now says he committed insider trading, even though he didn't buy his employer's stock and didn't have inside information about the company he bet on.

The case, which goes to trial next month, has become the latest test of insider trading law. Congress has never defined what it means, leaving regulators and courts across the country to decide what qualifies, a volatile process that sometimes leads appellate courts to rein in what they see as excesses.

Defense lawyers have dubbed Panuwat's case the first involving "shadow insider trading," a label that describes executives making well-timed bets in the shares of other companies. The SEC alleges Panuwat purchased options tied to the shares of Incyte, a rival drugmaker because he knew they would pay off when the market heard Pfizer was buying his company, Medivation, in 2016.

No court has ever tackled the idea that executives can go too far when they deploy their specialized knowledge or expertise to trade in the shares of rivals, said Karen Woody, a professor at the Washington and Lee University School of Law.

"I do think this is a push of the law and they are seeing if they can get a court to bless what is a bit of a stretch of the existing parameters," Woody said of the SEC's case.

この記事は Mint Mumbai の February 22, 2024 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。

この記事は Mint Mumbai の February 22, 2024 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。

MINT MUMBAIのその他の記事すべて表示
7 myths about ADHD and how to handle it
Mint Mumbai

7 myths about ADHD and how to handle it

Some adults with ADHD are misdiagnosed as having anxiety or depression as myths prevail even in the medical community

time-read
4 分  |
November 12, 2024
Why women bear the brunt of misdiagnosis
Mint Mumbai

Why women bear the brunt of misdiagnosis

Girls are half as likely as boys to be diagnosed correctly as having ADHD, show studies

time-read
2 分  |
November 12, 2024
At these international marathons, it's ready, steady, swig
Mint Mumbai

At these international marathons, it's ready, steady, swig

Can running and drinking go together? From France to Scotland, here are five races where running is a merry party

time-read
2 分  |
November 12, 2024
Indian IT firms should brace for Trump's second term
Mint Mumbai

Indian IT firms should brace for Trump's second term

Restrictive visa, trade and other policies under Trump 2.0 may force a review of their US-centric business models

time-read
3 分  |
November 12, 2024
Freebies don't offer a long-term solution but let us not ban them
Mint Mumbai

Freebies don't offer a long-term solution but let us not ban them

Keeping citizens dependent on handouts is not fiscally sustainable. India needs a transparent framework to regulate them

time-read
4 分  |
November 12, 2024
Is Nvidia's chief dreaming of selling us R2-D2-like robots?
Mint Mumbai

Is Nvidia's chief dreaming of selling us R2-D2-like robots?

It may turn out to be a good bet if the chip-maker keeps its risks low

time-read
3 分  |
November 12, 2024
Two ways the EPFO can get itself an image boost
Mint Mumbai

Two ways the EPFO can get itself an image boost

India's state-run retirement fund would do itself a favour by resolving its high level of claim rejections and speeding up interest payments. Its digital makeover should signal efficiency

time-read
2 分  |
November 12, 2024
Mint Mumbai

Forex card vs debit card: How to lower cross-border markup fees

Unlike debit cards, forex cards are not linked to your bank account, limiting your exposure to fraud and theft

time-read
5 分  |
November 12, 2024
India must reassess its rejection of the RCEP trade bloc
Mint Mumbai

India must reassess its rejection of the RCEP trade bloc

Joining it can work in our favour as global trade barriers get reshaped and value chains are forged

time-read
4 分  |
November 12, 2024
Armed hostility between Israel and Iran is very likely to escalate
Mint Mumbai

Armed hostility between Israel and Iran is very likely to escalate

Israel senses a high-risk high-return chance to reshape West Asia that Trump might green-light

time-read
3 分  |
November 12, 2024