The Government’s Ever-Expanding Net to Catch Insider Trading: How Public Life Sciences Companies Can Manage Heightened Risk

Federal regulators and prosecutors recently prevailed at trial with new and expansive theories of liability in two insider trading cases against executives at public life sciences companies.

In a new article in Law360, Orrick’s Amy Walsh explores what public life sciences companies should know about Securities and Exchange Commission v. Panuwat and United States v. Peizer. In light of the cases, she suggests public life science companies consider:

• Revising policies that touch on insider trading.
• Implementing controls regarding Rule 10b5-1 trading plans.
• Training employees and board members, reinforcing policies and procedures with messages from the top, investigating possible insider-trading and enforcing violations.