SEC v. Kevan Sadigh — U.S. Securities and Exchange Commission Litigation Release No. 26504, dated March 23, 2026.
The SEC charged Kevan Sadigh with insider trading based on material nonpublic information about two corporate acquisitions. Sadigh, tipped by a friend who received information from a J.P. Morgan analyst, made unlawful trades and profited. He has now consented to a final judgment permanently enjoining him from violating securities laws and ordering him to pay disgorgement, which is satisfied by a forfeiture order in a parallel criminal case.
Imagine someone learns a secret about a company before it's announced to everyone, like knowing a big company is about to buy a smaller one. This person then buys stock in the smaller company, hoping to make money when the news comes out and the price goes up. This is called insider trading, and it's illegal because it's not fair to other investors who don't have the secret information. In this case, Kevan Sadigh did just that and has now agreed to a court order to stop doing it and to pay back the profits he made.
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.
On March 20, 2026, the U.S. District Court for the Central District of California entered a final consent judgment against Kevan Sadigh. The judgment permanently enjoins Sadigh from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, as well as Section 14(e) and Rule 14e-3 thereunder. Sadigh was ordered to pay disgorgement of $108,120, which is deemed satisfied by an order of forfeiture in the parallel criminal case, United States v. Sadigh.
Named in this action: Kevan Sadigh.