SEC v. James L. Lieberman, Civil Action No. 1:12-cv-02198 (D. Colo.). The SEC is continuing its focus on insider trading, announcing on August 21 that it filed insider trading charges against James L. Lieberman. Lieberman traded Array BioPharma Inc. stock based on inside information about a pending transaction with Novartis, A.G. Lieberman was Array’s manager of environmental health and safety and received information from Array’s CFO telling him about an upcoming deal with Novartis. Twelve minutes later, Lieberman placed an order to purchase shares of Array common stock. He also placed an order to purchase shares in his sister’s account. Over a two-week period, Lieberman purchased nearly 50,000 shares of Array stock. After Array publicly announced the Novartis deal, Lieberman sold all the shares in both accounts, making $71,361 in profits.
Without admitting or denying the SEC’s allegations, Lieberman consented to a final judgment permanently enjoining him from future violations of Section 10(b) of the Securities Exchange Act and Rule 10b-5 thereunder; ordering him to pay disgorgement of $71,361, plus prejudgment interest of $4,906; and ordering him to pay a one-time civil penalty in the amount of $71,361, for a total of $147,628.