Insider trading, or trading in securities on the basis of material nonpublic information, is prohibited by the Securities Exchange Act of 1934. Allegations of insider trading frequently garner national and even international headlines and can cause significant upheaval for the companies and individuals involved. The stakes for individuals have never been higher. In today’s regulatory climate, the SEC is frequently utilizing its full arsenal of remedies against individuals charged with insider trading, including seeking officer and director bars and temporary/permanent bars for certain market professionals, against individuals charged with insider trading.
Sidley lawyers have significant experience representing clients involved in these investigations. We represent companies and individuals in all aspects of SEC and DOJ investigations and parallel proceedings involving alleged insider trading. Our lawyers conduct independent internal investigations of insider trading allegations for companies where no law enforcement proceeding is pending. We frequently assist clients who are called upon to respond to information requests from the Financial Industry Regulatory Authority, the options exchanges and other similar entities. Our lawyers have extensive experience counseling entities in this area, including revamping insider trading policies, developing Rule 10b5-1 trading plans and identifying best practices for opening and closing “trading windows.” Many of our experienced professionals couple their practical experience in this area with seasoned judgment developed in their prior careers as senior law enforcement and regulatory officials.