Facts

The U.S. Securities and Exchange Commission brought a complaint against Shivbir Grewal and Preetinder Grewal.

PLAINTIFF'S CONTENTIONS:
Plaintiff alleged that Shivbir, an attorney, was the primary outside counsel for Spectrum Pharmaceuticals Inc., in 2013, and also served as Spectrum's corporate secretary in board meetings on various occasions. Plaintiff further alleged that the defendants committed unlawful insider trading when they sold Spectrum stock shortly before Spectrum publicly announced, on March 12, 2013, that it expected a significant drop in sales and revenue. Plaintiff contended that Shivbir received that same information from Spectrum's senior management on March 5 and the defendants sold their Spectrum stock on March 7 and March 11. Plaintiff alleged that the defendants' conduct violated various antifraud provisions of the federal securities laws and as result of such conduct they avoided approximately $44,700 in losses.

Result

The parties settled the matter and both defendants consented to the entry of judgment against them. Pursuant to the consents, defendants were permanently enjoined from violating various federal securities laws. Shivbir further consented to pay disgorgement of $30,343, as well as a civil penalty in the same amount. Preetinder consented to pay disgorgement of $14,400, as well as a civil penalty in the same amount.

Other Information

FILING DATE: Dec. 22, 2014.