Last week, the Securities and Exchange Commission announced that it had filed a complaint against the Chief Information Officer of pharmaceutical company Viatris Inc. (formerly known as Mylan N.V.). The SEC is alleging that the CTO tipped his friend and former colleague, Dayakar Mallu, material nonpublic information about Mylan’s unannounced drug approval by the U.S. Food & Drug Administration, financial results, and an impending merger with a division of Pfizer Inc. According to the SEC's complaint, Mallu generated gains totaling nearly $8 million and avoided losses by trading Mylan securities based upon these tips and shared a portion of his profits with the CTO through cash payments in India.
Also last week, UCLA Law Professor Stephen Bainbridge posted this 45 minute video summarizing the law and theory of insider trading. Among other things, he discusses blatant misappropriation, tipping chains, what constitutes a "personal benefit".