SEC v. Ken Peterman

Ken Peterman allegedly engaged in insider trading in advance of a negative earnings announcement. According to the SEC’s complaint, Peterman allegedly received a confidential presentation detailing Comtech’s forthcoming negative quarterly earnings results on March 4, 2024. He was allegedly informed that he was being terminated for cause eight days later, on March 12, 2024. The SEC’s complaint alleges that a few hours after he was terminated, and while subject to two different trading blackouts, Peterman placed an order to sell Comtech stock. The complaint alleges that Peterman avoided losses of about $12445 by trading in advance of Comtech’s negative earnings announcement. Peterman allegedly directed his financial advisor to sell additional Comtech stock he held in a joint account, and Peterman allegedly would have avoided additional losses of about $110000 had the sale been completed.

Summary generated from official Securities and Exchange Commission press release