U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 25970 / April 8, 2024
Securities and Exchange Commission v. Matthew Panuwat, 4:21-cv-06322 (N.D. Cal. filed Aug. 17, 2021)
Jury Returns Verdict Finding Defendant Matthew Panuwat Liable for Insider Trading
On April 5, 2024, after an eight-day jury trial in the U.S. District Court for the Northern District of California, the Securities and Exchange Commission obtained a verdict in its favor in its case alleging insider trading in violation of the federal securities laws against defendant Matthew Panuwat.
The SEC’s complaint alleged that Panuwat used highly confidential information about an impending announcement of Pfizer Inc.’s acquisition of his then-employer, Medivation, Inc., to trade ahead of the news for his own enrichment. Rather than buying the securities of Medivation, Panuwat used the confidential information to purchase short-term, out-of-the-money call options of another comparable public company, Incyte Corporation. The complaint alleged that Panuwat purchased the options within minutes of learning the confidential information concerning the acquisition. The complaint further alleged that following the public announcement of Medivation’s acquisition just a few days after Panuwat purchased his stock options, Incyte’s stock price increased by approximately 8%, which generated illicit profits for Panuwat of over $100,000.
On January 14, 2022, the Court denied a motion to dismiss that had been filed by Panuwat. On November 20, 2023, the Court subsequently denied a motion for summary judgment filed by Panuwat. A jury trial began in San Francisco, California on March 25, 2024.
The SEC’s litigation against Panuwat was led by Jason Bussey, Matthew Meyerhofer, Brent Smyth, and Suzy LaMarca of the San Francisco Regional Office.