SEC and DOJ bring charges in $4.7 million insider trading case

The US Securities and Exchange Commission has charged Roland Mathys, a citizen of Switzerland, with illicit trading while in possession of material non-public information in violation of 15 USC § 78n(e) and Rule 14e-3(a) thereunder, 17 CFR § 240.14e-3(a), while the US Department of Justice has charged Mathys with one count of fraud in connection with a tender offer concerning the same events.  According to the criminal indictment and civil complaint, an executive vice president at the French multinational pharmaceutical company Sanofi, S.A. disclosed inside information to a family member about the impending acquisition of Bioverativ, Inc. by Sanofi in January 2018.  Within a few days of the executive’s disclosure, his family member communicated the information to a friend, Swiss citizen Roland Mathys, who purchased $170,071 worth of Bioverativ call options, knowing that the source of the information was the Sanofi executive.  Mathys sold the call options for a net profit of approximately $3,229,623 following public announcement of the acquisition in January 2018.  Mathys’ additional option contracts, which had been frozen pursuant to a preliminary injunction obtained by the SEC, were liquidated in February 2018 for approximately $1,568,732, bringing Mathys’ total profits to over $4.7 million.

SDNY press release | SEC litigation release

 | Criminal indictment | Amended complaint