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Securities Regulation Law Journal

Jan 8, 2025

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Ryan Kemrite Article Reviews How “Shadow Insider” Verdict Expands Authority of SEC

In an article published by the Securities Regulation Law Journal, the firm’s Ryan Kemrite examines the expanding definition of insider trading by the SEC based on a 2024 prosecution and verdict. In that case, tried in the U.S. District Court for the Northern District of California, a pharmaceutical executive was found liable for using nonpublic information received from one company to trade in the securities of an unrelated company. The article concludes that this “shadow insider” theory raises numerous questions about compliance, fairness and future applications of securities law. The complete article is available here.