Case library · Wall Street
The Drug Trial Secret
United States v. Martoma (2014)
Charge: Securities fraud and conspiracy (3 counts)Court: U.S. District Court, S.D.N.Y.State: New YorkDocket: Wall Street
The facts
The accused managed drug-company investments at a large investment fund. Two doctors worked on a trial of a new Alzheimer's drug. One, paid about $1,000 an hour as a consultant, shared secret safety data and then a draft slide show with bad results before they went public. The fund then bet heavily that the two drug makers' shares would fall. It made or saved about $275 million, and the accused got a bonus of over $9 million. The law requires proof the insider broke a duty of confidence for a benefit.
You have the facts the court had. Guilty or not guilty? Call it in the game with your friends, then see what the court actually decided. Wrong call, you drink.
Citation: United States v. Martoma, S.D.N.Y. (2014)
Read more at justice.gov. The source reveals the outcome.