One of the world’s premier biopharmaceutical companies, Pfizer former employee has been charged with insider trading.
The employees have allegedly attempted to profit off the pharmaceutical giant’s treatment for COVID-19.
Pfizer told in a statement, “The charges in this case relate to the personal conduct of a former Pfizer employee in violation of the company’s policies.”
“Pfizer is cooperating with the government’s investigation,” the statement added.
What is Insider Trading?
Insider trading is the trading of a public company’s stock or other securities (such as bonds or stock options) based on material, nonpublic information about the company.
In various countries, some kind of trading based on insider information is illegal. This is because it is seen as unfair to other investors who do not have access to the information, as the investor with insider information could potentially make larger profits than a typical investor could make.
What is the company’s Case?
The company has charged Amit Dagar, a former Pfizer Inc. employee, and his close friend and business partner, Atul Bhiwapurkar with insider trading.
The employee has been trading in advance in November 2021 based on inside information that the study of its Covid-19 antiviral treatment, Paxlovid, was successful.
Joseph Sansone, Chief of the Market Abuse Unit said, “As alleged in our complaint, Amit Dagar misused his access to confidential clinical trial results to enrich himself and his friend, Atul Bhiwapurkar.”
The SEC’s has filed a complaint in the US District Court for the Southern District of New York. Amit Dagar and Atul Bhiwapurkar have been charged with violating the antifraud provisions of “Section 10(b) of the Securities Exchange Act of 1934 and Exchange Act Rule 10b-5 thereunder and seek injunctive relief, disgorgement with prejudgment interest, and civil penalties.
