SEC Uncovers Wide-Reaching Insider Trading Scheme

The Securities and Exchange Commission today announced insider trading charges against seven individuals who generated millions in profits by trading on confidential information about dozens of impending mergers and acquisitions.  Data analysis allowed the SEC’s enforcement staff to uncover the illicit trading despite the traders’ alleged use of shell companies, code words, and an encrypted, self-destructing messaging application to evade detection.

In a parallel action, the U.S. Attorney’s Office for the Southern District of New York today unsealed criminal charges against the same seven individuals.

According to the SEC’s complaint, Daniel Rivas, a former IT employee of a large bank, was at the center of the alleged scheme, misusing his access to a bank computer system to tip four individuals who traded on the information.  He allegedly tipped others who also traded and passed along the tips.  According to the complaint, the traders profited on market-moving news related to 30 impending corporate deals from October 2014 to April 2017. read more »

Mylan Agrees to $465 Million Settlement of U.S. EpiPen Claims

Mylan NV reached a settlement with the U.S. Justice Department to pay $465 million to resolve claims that it knowingly misclassified its EpiPen product as a generic drug to avoid paying rebates owed to Medicaid, the U.S. Attorney’s Office in Massachusetts said. read more »

Uber Scores a Victory in Appeals Court Over Passenger Rights

A U.S. appeals court on Thursday ruled in favor of Uber Technologies in a closely watched lawsuit over whether passengers gave up their right to sue the ride-sharing company when they registered for its service.

The 2nd U.S. Circuit Court of Appeals in Manhattan vacated a lower court order that denied motions by Uber and former Chief Executive Officer Travis Kalanick to compel arbitration.

It also said Spencer Meyer, the passenger named in the proposed class action, had agreed as a matter of law to arbitrate his own claims with Uber.

Lawyers for Uber, Kalanick, and Meyer did not immediately respond to requests for comment.

The decision may give a boost to Internet companies hoping to force customers to submit to arbitration, included in a long list of terms and conditions they may not see.

Meyer accused Uber and Kalanick of violating antitrust laws by conspiring with drivers to charge high "surge pricing" fares during periods of heavy demand. read more »

Wells Fargo changes board, names Duke chair in response to scandal

Wells Fargo & Co (WFC.N) Vice Chair Betsy Duke will replace retiring Chair Stephen Sanger next year, one of several changes announced on Tuesday in a board overhaul following a sales practices scandal.

Sanger will retire at year-end, earlier than his previous plans to depart in April upon reaching a mandatory retirement age of 72.

The two longest-serving directors, Cynthia Milligan and Susan Swenson, will retire at the same time. Juan Pujadas, a former PricewaterhouseCoopers principal, will join as an independent director on Sept. 1.

The board also detailed changes to four of its committees and said it would make more changes over time, trying to balance competing needs for directors with Wells Fargo experience and those with new perspectives on the company.

Wells Fargo had long maintained a reputation as a well-run, highly profitable institution that managed to sell more products to customers than any of its big-bank rivals. That image was shattered nearly a year ago when it revealed that thousands of its employees created as many as 2.1 million phony accounts in customers' names without their permission. read more »