SEC Director of Enforcement Highlights Insider Trading Verdict

SEC Division of Enforcement Director Gurbir S. Grewal expressed satisfaction with the outcome of a jury trial in the Central District of California, which found the former vice president of a publicly traded multinational manufacturing company liable for insider trading.

As previously covered, the SEC charged the individual with executing illegal trades after obtaining material non-public information. The complaint alleged that the individual purchased shares and options contracts prior to the company's quarterly earnings releases in three separate quarters and subsequently sold the assets for a significant gain after the earnings statements were released.

Mr. Grewal stated that this verdict "underscores the importance of holding insiders who are entrusted with critical non-public information responsible for illegal trading so that market integrity is maintained."