U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23455 / January 27, 2016
Securities and Exchange Commission v. Vlad B. Spivak, et al., Civil Action No. 1:15-cv-13704-FDS (D. Mass., filed November 2, 2015)
Court Enters Final Judgment Against Shirmila O. Doddi in Insider Trading Action
The Securities and Exchange Commission announced today that on January 20, 2016, the Honorable F. Dennis Saylor of the United States District Court for the District of Massachusetts entered a final judgment against defendant Shirmila O. Doddi. The final judgment permanently enjoins Doddi from future violations of Section 10(b) and Rule 10b-5 and orders further proceedings for the purposes of determining the appropriate amount of disgorgement, prejudgment interest thereon, and civil penalties. Doddi consented to the final judgment.
In its complaint, the SEC alleged that, in 2011, Vlad B. Spivak, then a resident of Medford, Massachusetts, traded in the securities of American Dental Partners, Inc. ("ADPI") on the basis of material nonpublic information that he received from his romantic partner, Shirmila O. Doddi. The complaint alleged that Doddi, who was then a financial analyst at a commercial bank, provided Spivak with material, nonpublic information that she had obtained in the course of her employment regarding an impending acquisition of ADPI by a private equity firm. The complaint further alleged that following the public announcement of the acquisition, the price of ADPI stock rose by seventy-nine percent and Spivak, who had traded in accounts held in his name and in the name of his mother, realized profits of over $222,000. Doddi did not trade in ADPI stock.
The SEC's complaint charged Spivak and Doddi with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, which are antifraud provisions of the federal securities laws. The litigation against Spivak is ongoing.
See also Litigation Release 23398 (November 2, 2015).