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Apr. 18, 2024

SEC trial victory in ‘shadow’ trading trial – what ‘shadow’?

A jury found former Medivation executive Matthew Panuwat liable for insider trading by trading in Incyte's stock, based on the theory that acquisition interest in Medivation spilled over to Incyte and boosted its stock price. The verdict shines a light on shadow trading and company compliance programs.


On April 5, following an eight-day trial, a jury deliberated for just over two hours before finding that the SEC established by a preponderance of evidence that former Medivation executive Matthew Panuwat is liable for insider trading by trading not in Medivation's stock but instead its alleged competitor Incyte's stock (minutes after learning from his CEO that Pfizer was close to acquiring Medivation).

This first ever so-called "shadow" ...

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