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First 10b5-1 Insider Trading Case Raises Compliance Issues
Reprinted from: Law360 | April 17, 2024Cadwalader partners Kenneth Breen and Phara Guberman, and associate Elizabeth Gorman, authored an article, “First 10b5-1 Insider Trading Case Raises Compliance Issues,” which appeared in Law360.
Before last year, the U.S. Department of Justice had never brought insider trading charges against an executive based primarily on the filing of 10b5-1 plans. But, last month, U.S. v. Peizer — the first case of this kind — survived the defendant's motion to dismiss the indictment.
The case, alleging securities fraud and insider trading against former chairman and CEO of Ontrak Inc., Terren Peizer, continues on. The article reviews the background issues of this case and why, even at this stage, there are important practice takeaways for attorneys and their clients.
Read it here.
