June 5, 2024

SEC charges former Lumentum executive with insider trading

On June 3, 2024, the Securities and Exchange Commission announced that insider trading charges were filed against Andre Wong in the Southern District of New York for unlawfully purchasing securities of NeoPhotonics Corporation before his then-employer, Lumentum Holding Inc., announced publicly that it had agreed to acquire the company.

According to the SEC’s complaint, Wong was a vice president for Lumentum when he obtained material nonpublic information (“MNPI”) regarding Lumentum’s impending purchase of NeoPhotonics, from a colleague and close friend at Lumentum who was working on the acquisition.  Based on this MNPI, Wong, who had never traded in NeoPhotonics securities, purchased 10,000 shares of NeoPhotonics stock.  According to the SEC, the stock price rose by approximately 39 percent following the acquisition announcement, and Wong’s stock increased by more than $62,000.  When questioned by Federal Bureau of Investigation agents regarding these trades, Wong allegedly denied that he was aware of Lumentum’s plans to acquire NeoPhotonics when he purchased the stock.  He also allegedly created false texts to conceal an in-person meeting with the colleague who shared the MNPI.

Wong is charged in the complaint with violating the antifraud provision of Section 10(b) of the securities Exchange Act of 1934 and Rule 10b-5 thereunder.  The SEC is seeking a permanent injunction against Wong as well as disgorgement, prejudgment interest, and an officer and director bar.

SEC Litigation Release | Complaint