Sunday, June 12, 2011

More Law Firm-Linked Insider Trading...

[h/t to the Legal Ethics Forum] Hot on the heels of our recent post on guarding against law firm insider trading, comes a report of another alleged incident of insider trading linked to a law firm: "SEC: California inside trader stole Abbott/AMO deal secrets from his daughter":
  • "The SEC charges California personal injury attorney Dean Goetz with insider trading, accusing him of stealing confidential information about Abbott's 2009 buyout of Advanced Medical Optics from his daughter, also an lawyer who worked for AMO."
  • "Unbeknownst to Goetz's daughter, working on the deal during the winter holidays at her parents' house, Goetz allegedly stole the information he used to buy 900 shares of AMO stock on Jan. 8, 2009, according to the SEC."
  • The American Lawyer points to evidence suggesting that the lawyer's daughter, who was not accused of wrongdoing, was likely working at Skadden, Arps, Slate, Meagher & Flom at the time.
The lawyer in question agreed to settle the charges against him with the SEC, without admitting or denying their allegations, subject to court approval.

No comments:

Post a Comment