SEC Settles Insider Trading Claims Against Trader in Advanced Medical Optics, Inc.

Litigation Release No. 24703 / January 2, 2020

Securities and Exchange Commission v. James V. Mazzo, et al., Civil Action No. 12-01327-DOC (AFM) (C.D. Cal. filed Aug. 17, 2012)

The Honorable David O. Carter of the United States District Court for the Central District of California entered a final judgment approving the Commission's settlement of its insider trading claims against David L. Parker.

The SEC's complaint, which was filed in 2012, alleged that Parker traded on material, nonpublic information concerning Advanced Medical Optics, Inc.'s upcoming tender offer by Abbott Laboratories, Inc. The complaint alleged that former Advanced Medical Optics' Chief Executive Officer James V. Mazzo tipped his good friend, former baseball player Douglas V. DeCinces, who in turn tipped Parker and four other friends, each of whom traded on the information. Mazzo, DeCinces, and the four other alleged tippees previously settled with the Commission, and Parker's settlement resolves the litigation in full.

Without admitting or denying the allegations, Parker consented to a final judgment, which was entered on December 11, 2019, that permanently enjoins him from violating Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder, orders Parker to pay $343,954 in disgorgement, and imposes a $56,046 civil penalty.

The litigation was led by Christopher R. Kelly, Jennifer C. Barry, and Mark R. Sylvester in the Commission's Philadelphia Regional Office.