Pfizer Insider Traded On COVID Pill News, Raked In $274K! EXTRA!

SEC v. Amit Dagar, Atul Bhiwapurkar — U.S. Securities and Exchange Commission Litigation Release No. 26210, dated January 6, 2025.

The SEC charged Amit Dagar and Atul Bhiwapurkar with insider trading. Dagar, a former Pfizer statistician, learned about positive trial results for Paxlovid and shared it with Bhiwapurkar. Both then traded Pfizer stock before the public announcement, making illicit profits. They consented to final judgments, permanently enjoined from violating securities laws, with their disgorgement obligations satisfied by forfeiture in a parallel criminal case.

In Plain English

Imagine you work at a company and find out some really big, exciting news before anyone else. This news is so important that it will likely make the company's stock price go up a lot. You're not supposed to use this secret information to buy or sell stock. But, Amit Dagar, who worked at Pfizer, learned that their new COVID medicine, Paxlovid, worked really well. He told his friend Atul Bhiwapurkar. Before the company announced the good news to everyone, Dagar and Bhiwapurkar bought a lot of Pfizer stock. When the news came out, the stock price jumped up, and they sold their shares for a profit. The SEC found out and took them to court. They agreed to pay back the money they made unfairly.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

1. Learning Confidential Information On the day before Pfizer's November 5, 2021, public announcement, Amit Dagar, a former Pfizer statistician, learned material, nonpublic information about the successful results of a trial for its COVID-19 antiviral treatment, Paxlovid.
2. Sharing the Secret Dagar then shared this confidential information with his close friend and business partner, Atul Bhiwapurkar.
3. Trading Ahead of the Announcement On the day before the announcement, Dagar and Bhiwapurkar used this nonpublic information to trade in Pfizer's stock.
4. The Public Announcement On November 5, 2021, Pfizer announced that its randomized, double-blind study of Paxlovid was successful, with the CEO calling it a 'game-changer'.
5. Stock Price Surge Following the positive announcement, Pfizer's stock price increased by nearly 11 percent, the largest single-day price move for the stock since 2009.
6. Illicit Profits Realized Dagar's trading generated approximately $214,395 in illicit profits, while Bhiwapurkar's trading generated approximately $60,300 in illicit profits.

The Enforcement Action

On December 27, 2024, the U.S. District Court for the Southern District of New York entered final judgments against Amit Dagar and Atul Bhiwapurkar. Dagar and Bhiwapurkar consented to the judgments, permanently enjoined from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The court ordered Dagar to pay disgorgement of $214,395 plus prejudgment interest of $41,908, deemed satisfied by forfeiture in a parallel criminal case. The court ordered Bhiwapurkar to pay disgorgement of $60,300, deemed satisfied by forfeiture in a parallel criminal case, and a civil penalty of $60,300.

Named in this action: Amit Dagar, Atul Bhiwapurkar.

Original SEC litigation release ↗ · Browse all cases