SEC Charges Former Lumentum Executive with Insider Trading

June 4, 2024/US SEC

On June 3, 2024, the Securities and Exchange Commission filed insider trading charges against Andre Wong for unlawfully trading the securities of NeoPhotonics Corporation (“NeoPhotonics”) ahead of an announcement that his then-employer, Lumentum Holdings Inc. (“Lumentum”), had agreed to acquire NeoPhotonics.

According to the SEC’s complaint, filed in federal district court in the Southern District of New York, Wong learned material nonpublic information about Lumentum’s plans to acquire NeoPhotonics from a colleague at Lumentum.  Based on this information, Wong purchased 10,000 shares of NeoPhotonics stock ahead of Lumentum’s acquisition announcement and generated approximately $62,000 in illegal profits. 

The case originated from the SEC Market Abuse Unit’s Analysis and Detection Center, which uses data analysis tools to detect suspicious trading patterns.

The SEC’s complaint charges Wong with violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 [15 U.S.C. § 78j(b)] and Rule 10b-5 thereunder [17 C.F.R. § 240.10b-5] and seeks permanent injunctive relief, disgorgement with prejudgment interest, and civil penalties.

The SEC’s investigation was conducted by Joshua R. Geller, John Rymas, Lindsay S. Moilanen, and Elzbieta Wraga of the Market Abuse Unit and New York Regional Office and was supervised by Joseph G. Sansone.  Mr. Geller, Sushila Rao Pentapati, and Preethi Krishnamurthy will lead the SEC’s litigation.

Leave a Comment

Your email address will not be published. Required fields are marked *