Insider Trading Risk During the COVID-19 Outbreak

On March 20, 2020, news outlets reported that four U.S. Senators sold millions of dollars in stock following classified briefings to the Senate on the threat of a COVID-19 outbreak.

Three days later, the Co-Directors of the Securities and Exchange Commission’s Division of Enforcement, Stephanie Avakian and Steven Peikin, issued a statement reminding market participants of their obligations with respect to material non-public information and of the SEC’s commitment to protecting investors from fraud and ensuring market integrity.

Please click here to continue reading on the Cleary Enforcement Watch blog. This article was also republished on the Harvard Law School Forum on Corporate Governance.