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SEC v. Panuwat - The Federal Pursuit of Shadow Trading

This document summarizes an article from the Brooklyn Journal of Corporate, Financial & Commercial Law regarding the SEC's landmark complaint against Matthew Panuwat for "shadow trading." The SEC alleged that Panuwat used material non-public information from his employer, Medivation, about its acquisition to trade options in a similar company, Incyte. While typically insider trading involves using information about one's own employer, Panuwat's conduct constituted the emerging concept of "shadow trading." The SEC's pursuit of Panuwat indicates that company insiders may face liability for shadow trading. However, the SEC's argument relies heavily on Panuwat violating Medivation's internal policies, raising concerns about enforcing private policies through federal law. The article

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Tim Marvin
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0% found this document useful (0 votes)
30 views29 pages

SEC v. Panuwat - The Federal Pursuit of Shadow Trading

This document summarizes an article from the Brooklyn Journal of Corporate, Financial & Commercial Law regarding the SEC's landmark complaint against Matthew Panuwat for "shadow trading." The SEC alleged that Panuwat used material non-public information from his employer, Medivation, about its acquisition to trade options in a similar company, Incyte. While typically insider trading involves using information about one's own employer, Panuwat's conduct constituted the emerging concept of "shadow trading." The SEC's pursuit of Panuwat indicates that company insiders may face liability for shadow trading. However, the SEC's argument relies heavily on Panuwat violating Medivation's internal policies, raising concerns about enforcing private policies through federal law. The article

Uploaded by

Tim Marvin
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Brooklyn Journal of Corporate, Financial & Commercial Law

Volume 17 Issue 2 Article 9

5-15-2023

SEC v. Panuwat: The Federal Pursuit of Shadow Trading


Kayla Kershen

Follow this and additional works at: https://brooklynworks.brooklaw.edu/bjcfcl

Part of the Banking and Finance Law Commons, Contracts Commons, and the Securities Law
Commons

Recommended Citation
Kayla Kershen, SEC v. Panuwat: The Federal Pursuit of Shadow Trading, 17 Brook. J. Corp. Fin. & Com. L.
151 (2023).
Available at: https://brooklynworks.brooklaw.edu/bjcfcl/vol17/iss2/9

This Note is brought to you for free and open access by the Law Journals at BrooklynWorks. It has been accepted
for inclusion in Brooklyn Journal of Corporate, Financial & Commercial Law by an authorized editor of
BrooklynWorks.
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