Companies Rethink Insider Trading Policies After Novel SEC Win

Edward Imperatore spoke with Bloomberg Law about the U.S. Securities and Exchange Commission’s (SEC) prosecutorial win against Matthew Panuwat, a former public company executive who used inside information from his company to purchase securities of a competitor company, which has come to be known as “shadow insider trading.”

The win in the first-ever shadow trading trial has already caused S&P 500 companies to reevaluate their internal policies, with many considering scaling back bans on using confidential information to trade other businesses’ stock in order to protect their employees from legal trouble.

“From the SEC’s perspective, that is perhaps an unintended consequence of the Panuwat case,” said Edward.

Read the full article.