Insider Trading Enforcement in 2022
Each year, the Department of Justice ("DOJ"), the Securities and Exchange Commission ("SEC"), and in recent years, the Commodity Futures Trading Commission ("CFTC") dedicate substantial resources to investigating and prosecuting illegal insider trading across U.S. securities and commodities markets. This past year, we have observed significant developments and emerging trends in the enforcement of insider trading laws and regulations. For example:
- 10b5-1 trading plans are under scrutiny and subject to new rules;
- The DOJ and the SEC are applying traditional insider trading concepts to digital assets;
- The Second Circuit Court of Appeals rejected the DOJ's arguments in Blaszczak II; and
- The SEC is pursuing novel "shadow trading" legal theories of insider trading liability.
This White Paper analyzes these developments and trends. In addition, at the end of this White Paper, we have summarized the federal insider trading enforcement actions filed in 2022.