Insider Trading Risk During the COVID-19 Outbreak
March 27, 2020
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.