On January 24, 2025, the Securities and Exchange Commission reached a settlement to resolve insider trading charges against Ohio resident John Heropoulos for trading in the securities of Lantheus Holding, Inc., a producer of medical diagnostic and therapeutic devices, before the release of Lantheus’ fiscal quarter and full-year financial results in 2022.
According to the SEC’s order, Heropoulos was a Regional Sales Director for Lantheus when he obtained material nonpublic information during the course of his employment that reflected record sales of a certain drug that was a significant driver of Lantheus’ financial results for 2022. The SEC alleges that Heropoulos breached a duty of trust and confidence and the duty of confidentiality owed to Lantheus when he purchased Lantheus stock and call options before the financial results were released to the public. According to the SEC’s order, Heropoulos obtained realized and unrealized gains of approximately $60,587.72 after Lantheus’ stock prices increased following the public announcement of the financial results in February 2022.
The SEC charged Heropoulos with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. Without admitting or denying the SEC’s findings, Heropoulos consented to the entry of the SEC’s cease-and-desist order and agreed to pay disgorgement of $60,587.72, prejudgment interest of $10,371.58, and a civil penalty of $60,587.72.