DOJ Cautions Execs With Novel Insider Trading Case

March 6, 2023

Howard Berkenblit was quoted in the article, "DOJ Cautions Execs With Novel Insider Trading Case," published by Law360 [sub. req'd] on March 6.

The article explores a novel insider trading indictment against Terren Peizer (founder, chairman and chief executive of telehealth company Ontrak Inc.) which the U.S. Department of Justice has hailed as "groundbreaking," with intent to serve as a warning to executives leaning on 10b5-1 trading plans to stay out of trouble. Yet experts weighing in say it's unlikely to lead to a flood of similar prosecutions.

Howard comments on the indictment that it likely serves "as a symbolic case, to scare people a little bit into compliance."

"They'll probably, I would guess, wait and see if it works before they unleash more resources on it."

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