SEC v. Joseph M. Dupont

Joseph M. Dupont, who was then a vice president at Alexion Pharmaceuticals, Inc., allegedly tipped his close friend Shawn P. Cronin to confidential information about the acquisition of Portola Pharmaceuticals Inc. Cronin then allegedly provided the information to Mendoza and Kaplan, and Kaplan, in turn, provided the information to Feldman. Cronin, Mendoza, Kaplan, and Feldman allegedly used this material, nonpublic information to purchased Portola securities prior to the announcement of the acquisition. Kaplan and Feldman allegedly passed information on to other family members and friends, who also profitably traded. According to the SEC, Dupont, Cronin, Kaplan, Feldman and Mendoza violated Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder.

Summary generated from official Securities and Exchange Commission press release