Tag: Shadow Insider Trading

SEC Defeats Summary Judgment in Insider-Trading Suit Alleging “Shadow Trading” | Corporate Defense and Disputes

The SEC defeated a motion for summary judgment brought by a defendant whom the SEC accused of engaging in insider trading based on news about a not-yet-public corporate acquisition when he purchased securities of a company not involved in that deal. The November 20, 2023 decision in SEC v. Panuwat (N.D. Cal.) keeps alive the SEC’s theory of “shadow trading,”…

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Will the SEC’s shadow trading theory fall to SCOTUS’s major questions doctrine? – Cooley LLP

In August 2021, the SEC filed a complaint in the U.S. District Court charging Matthew Panuwat, a former employee of Medivation Inc., an oncology-focused biopharma, with insider trading in advance of Medivation’s announcement that it would be acquired by a big pharma company. But it wasn’t your average run-of-the-mill insider trading case. Panuwat didn’t trade in shares of Medivation or…

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SEC’s shadow trading case sparks new ‘major questions’ challenge | Reuters

ICAN’s amicus brief is focused entirely on the SEC’s theory of the case, not the fight over facts. According to the nonprofit, the commission is overreaching Supreme Court precedent and its mandate under federal securities laws by trying to block investors from trading in shares of a competing or related company based on confidential information about their own employer. ICAN…

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Shadow Trading – Bloomberg

The question that interests me here is: What is the denominator? Was Panuwat the first person ever to notice that, when he got inside information about his company, he could use it to trade other companies’ stocks? No, absolutely not, tons of my readers have also noticed that, and they keep writing to me about it. Was Panuwat the first person…

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Shadow ETF trading – Bloomberg

But another question you might have is: Does shadow trading happen a lot? Are there a ton of corporate insiders and deal advisers who are regularly making shadow trades in order to profit from inside information? Some casual empirical data: Very few people get caught shadow trading; I can only really think of the one enforcement action. This could mean that it is very rare,…

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