SEC Settles Insider Trading Charges Against Corporate Insider
Dec. 6, 2022
File No. 3-21251
December 6, 2022 - The Securities and Exchange Commission today announced that Vincent Issier of Benecia, California has agreed to settle charges for insider trading in the securities of Coherent, Inc. ("Coherent") before the January 19, 2021 public announcement (the "Announcement") that Lumentum, Inc. ("Lumentum") had agreed to acquire Coherent for approximately $5.7 billion.
According to the SEC's order, Issier, who is an employee of Lumentum, was part of the Lumentum due diligence team vetting the deal and obtained material nonpublic information ("MNPI") about the acquisition negotiations through this role. The SEC's order finds that on January 15, 2021, while in possession and on the basis of this MNPI, Issier purchased Coherent stock and options in violation of his duties to Lumemtum. When Coherent's stock price rose by approximately 30% following the Announcement, Issier obtained ill-gotten gains of approximately $6,300.
The SEC's order further finds that Issier violated the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Without admitting or denying the SEC's findings, Issier consented to a cease-and-desist order and agreed to pay disgorgement of $6,295.89, prejudgment interest of $266.04, and a civil penalty of $6,295.89.
The SEC's investigation was conducted by Ann Marie Preissler, Joshua Geller, David Austin, and John Rymas of the Enforcement Division's Market Abuse Unit, and by Elzbieta Wraga of the New York Regional Office. This case has been supervised by Market Abuse Unit Chief Joseph G. Sansone. The SEC appreciates the assistance of the Financial Industry Regulatory Authority.