Resolution arises from SEC’s investigation into use of political intelligence.
Willkie represents Deerfield Management Company in an SEC resolution based on alleged use of political intelligence that was announced today. After criminal charges were filed against three current or former Deerfield analysts in May 2017, Willkie represented Deerfield in reaching a resolution with the SEC based on allegations that it failed to establish, maintain and enforce policies and procedures designed to prevent the misuse of nonpublic information. The SEC did not seek to hold Deerfield accountable for insider trading or any other intentional misconduct. Deerfield neither admitted nor denied the SEC’s allegations, will disgorge approximately $714,110 in management fees earned on alleged insider trading profits resulting from its analysts’ activities plus interest, and will pay a monetary penalty equal to the alleged insider trading profits of approximately $3.9 million.
The matter is being handled by partners Michael Schachter and Elizabeth Gray, senior counsel Martin Klotz, counsel Scott Arenare, associates Christopher McNamara, Nicolas Heliotis, Brooke Sgambati, Patricia Haynes, Andrew Shindi and Adam Mendel, and law clerk Anna Riddle.