SEC v. Michael A. Smith and Douglas Joshua Dalton

Michael A. Smith and Douglas Joshua Dalton allegedly engaged in insider trading ahead of the August 7, 2024 announcement that private equity firm Bansk Group LP would acquire PetIQ. According to the SEC’s complaint, Smith purchased PetIQ common stock in his ex-wife’s brokerage accounts on the basis of material nonpublic information about the potential acquisition of PetIQ. As alleged, Smith shared information about the potential acquisition with Dalton, and, on the basis of that information, Dalton purchased PetIQ call options. The complaint further alleges that when the acquisition was later announced, the price of PetIQ’s common stock rose 48%, and Smith and Dalton collectively made more than $200000 in profits.

Summary generated from official Securities and Exchange Commission press release