By Howard A. Fischer, Linda A. Malek, Pralika Jain, and Kiyong Song, Moses & Singer, LLP
Healthcare research companies face special exposure to insider trading risks, according to a team of experts at Moses & Singer, because market reaction to their potentially life-saving products creates opportunities for financial gain that can be improperly exploited. The attorneys examine two recent SEC enforcement actions that highlight those risks and emphasize the need for companies to implement policies to encourage compliance. Among other things, the authors note regulators’ sensitivity to, and diligence in uncovering, insider trading violations. They suggest steps healthcare and life sciences companies can take to minimize their chances of facing the reputational harm that can be inflicted by insider trading.
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