Criminal,
Securities
Jun. 6, 2024
Stock warrants, not insider knowledge, behind CEO's decision to sell, attorneys argue
Terren Peizer's case marks the first time the Department of Justice has sought criminal insider trading charges against an executive solely based on their fraudulent filing of 10b5-1 trading plans.
LOS ANGELES - Ontrak Inc. founder and former CEO Terren Peizer intended to sell his share of the company due to approximately one million expiring stock warrants months before executives at Cigna - Ontrak's largest health insurance client at the time - raised financial concerns to him and later terminated their contract with the company, his attorney told a jury during opening statements late Tuesday afternoon.
King & Spalding LLP partner David K. Willingham also told jur...
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