SEC Obtains Final Judgment Against Former Arista Networks Chairman Andy Bechtolsheim for Insider Trading

On May 30, 2024, the U.S. District Court for the Northern District of California entered a final judgment, by consent, against Andreas “Andy” Bechtolsheim, the founder and Chief Architect of Silicon Valley-based technology company Arista Networks, Inc., in an action alleging that Bechtolsheim engaged in insider trading.

The SEC alleged in its complaint, filed on March 26, 2024, that Bechtolsheim, who was Arista Networks’s chair at the time, illegally traded in Acacia options on July 8, 2019, after learning of Acacia’s impending acquisition through his and Arista Networks’s longstanding relationship with another multinational technology company that was also considering acquiring Acacia. Immediately after learning this information, Bechtolsheim allegedly traded Acacia options in the accounts of a close relative and an associate. The next day, July 9, 2019, before the market opened, Acacia and Cisco announced that Cisco had agreed to acquire Acacia. According to the SEC’s complaint, Bechtolsheim’s trading generated combined illegal profits of $415,726 in the accounts of his relative and associate.

Source: SEC Obtains Final Judgment Against Former Arista Networks Chairman Andy Bechtolsheim for Insider Trading