On August 18, 2026, federal prosecutors in the Southern District of New York arrested David Pidgeon, the Director of Operations at Treace Medical Concepts, Inc. (“TMCI”), for insider trading. Prosecutors also announced the unsealing of an indictment charging Pidgeon with one count of securities fraud under Title 15 of the United States Code, and one count of securities fraud under Title 18 of the United States Code for his role in the scheme.
According to the indictment, in October 2025, Pidgeon obtained material nonpublic information (“MNPI”) through his employment regarding TMCI’s lower-than-expected quarterly earnings due to low sales volume and difficulties meeting financial projections. Based on this MNPI, Pidgeon allegedly sold his shares in other companies to purchase short-term put options in TMCI stock just days before TMCI’s third quarter earnings announcement. According to federal prosecutors, the trades not only violated a duty of trust and confidence that Pidgeon owed to TMCI and its shareholders, but they also violated TMCI’s policy that banned employees from trading in TMCI options at all times. Pidgeon’s trades were also reportedly placed during a company-wide black out period that temporarily prohibited employees from trading in TMCI securities prior to the release of quarterly financial results. The day after the quarterly earnings announcement, Pidgeon allegedly sold all of his options when the company’s stock price dropped by approximately 28 percent, enabling him to realize more than $37,000 in illegal profits.
USAO SDNY Press Release | Unsealed Indictment