SEC v. Joseph M. Dupont; Stanley Kaplan; and Jarett G. Mendoza, No. LR-25903, Southern District of New York (Nov. 28, 2023) — Press Release
raw: Joseph M. Dupont et al.
Joseph M. Dupont et al., No. 1:23-cv-05565 (S.D.N.Y. Nov. 28, 2023)
summary
The SEC obtained judgments against Joseph M. Dupont, Stanley Kaplan, and Jarett G. Mendoza for insider trading involving Portola Pharmaceuticals, resulting in officer and director bars.
paragraph
The defendants were charged with insider trading involving confidential information regarding Alexion Pharmaceuticals' acquisition of Portola Pharmaceuticals. The scheme led to a stock price increase of over 130 percent following the announcement of the tender offer. All three defendants consented to judgments enjoining future violations of the Securities Exchange Act and were barred from serving as officers or directors of public companies.
narrative
The SEC obtained judgments against Joseph M. Dupont, Stanley Kaplan, and Jarett G. Mendoza for insider trading related to the acquisition of Portola Pharmaceuticals by Alexion Pharmaceuticals. The SEC alleged that Dupont, a vice president at Alexion, tipped confidential information about a May 2020 tender offer to a friend, who then passed the information to Kaplan and Mendoza. This insider information allowed the group to trade profitably before Portola's stock price surged by more than 130 percent. Following parallel criminal proceedings, all three defendants pleaded guilty to federal securities fraud charges. The defendants consented to judgments enjoining them from violating Sections 10(b) and 14(e) of the Securities Exchange Act and were barred from serving as officers or directors of public companies. While non-monetary sanctions have been entered, the court will determine any monetary remedies at a later date.
Classified insider-trading(confidence 99%). EDGAR detection: forms 4/3/5/144· recall 81% / precision 19%. detection rule →
Statutes
Sections 10(b) and 14(e) of the Securities Exchange ActSections 10(b) and 14(e) of the Securities Exchange Act
Parties
Securities and Exchange CommissionJoseph M DupontShawn P CroninJarett G MendozaPaul FeldmanStanley Kaplan
Keywords
joseph dupontdupontsecuritiessecsecurities exchangeinsider tradingjosephmendozaagainstkaplanportolaexchange commissionconsent againstjarett mendozaclose friend
Exhibits & Attached Documents (1)
Extracted insights
Entities 7
- person close friend
- person jarett g. mendoza
- person joseph m. dupont
- person margaret spillane
- agency Securities and Exchange Commission
- company serving as an officer or director of a public company
- person stanley kaplan
Triples 14
- Securities And Exchange Commission obtained judgments against Joseph M. Dupont and Stanley Kaplan for insider trading in Portola Pharmaceuticals Inc. securities
- Securities And Exchange Commission obtained judgments against Jarett G. Mendoza for insider trading in Portola Pharmaceuticals Inc. securities
- Joseph M. Dupont tipped confidential information to a close friend about Alexion Pharmaceuticals Inc.'s anticipated May 2020 tender offer to acquire Portola
- Close friend passed information to Stanley Kaplan and Jarett G. Mendoza
- Stanley Kaplan pled guilty to federal criminal charges for securities fraud in United States v. Joseph Dupont et al., 23-cr-00320
- Jarett G. Mendoza pled guilty to securities fraud and related charges in United States v. Jarett Mendoza, 23-cr-00316
- Joseph M. Dupont consented to judgments enjoining him from violating Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3
- Stanley Kaplan consented to judgments enjoining him from violating Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3
- Jarett G. Mendoza consented to judgments enjoining him from violating Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3
- Joseph M. Dupont was barred from serving as an officer or director of a public company
- Stanley Kaplan was barred from serving as an officer or director of a public company
- Jarett G. Mendoza was barred from serving as an officer or director of a public company
- Securities And Exchange Commission is conducting investigation by Margaret Spillane, Matthew Lambert, and Alison Conn of the New York Regional Office
- Margaret Spillane is leading litigation against Joseph M. Dupont, Stanley Kaplan, and Jarett G. Mendoza
PDF (from attached: complaint)
Text layers
Extracted body text (2,443c)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25903 / November 28, 2023 Securities and Exchange Commission v. Joseph M. Dupont et al., No. 1:23-cv-05565 (S.D.N.Y. filed June 29, 2023) SEC Obtains Judgments Against Three Defendants for Insider Trading Prior to Pharmaceutical Merger On November 27, 2023, the Honorable Vincent Marrero of the United States District Court for the Southern District of New York entered judgments by consent against defendants Joseph M. Dupont and Stanley Kaplan, who were each charged with insider trading in the securities of Portola Pharmaceuticals Inc. Previously, on August 9, 2023, Judge Marrero entered a consent judgment against defendant Jarett G. Mendoza, who was also charged with insider trading Portola securities. The SEC’s complaint, filed on June 29, 2023, alleges that Dupont was a vice president at Alexion Pharmaceuticals Inc. when he knowingly or recklessly tipped confidential information to a close friend about an anticipated May 2020 announcement of a tender offer by Alexion to acquire Portola. According to the SEC’s complaint, the close friend traded on that information and then passed the information to Kaplan and Mendoza, who also profitably traded. On the day of the acquisition announcement, Portola’s stock price increased more than 130 percent. On September 15, 2023, and September 19, 2023, respectively, Dupont and Kaplan pled guilty to federal criminal charges for securities fraud in a parallel criminal action before the District Court for the Southern District of New York in United States v. Joseph Dupont et al., 23-cr-00320. Previously, on June 28, 2023, Mendoza pled guilty to securities fraud and related charges in United States v. Jarett Mendoza, 23-cr-00316. Dupont, Kaplan, and Mendoza each consented to judgments enjoining them from violating Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder. In addition, each was barred from serving as an officer or director of a public company. The district court will determine monetary remedies, if any, against these defendants at a later date. The SEC’s litigation is continuing as to the remaining defendants. The SEC’s ongoing investigation is being conducted by Margaret Spillane, Matthew Lambert, and Alison Conn of the New York Regional Office under the supervision of Thomas P. Smith, Jr. The litigation is being led by Ms. Spillane. SEC Complaint
OCR text (2,443c · html-text · 99% conf)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25903 / November 28, 2023 Securities and Exchange Commission v. Joseph M. Dupont et al., No. 1:23-cv-05565 (S.D.N.Y. filed June 29, 2023) SEC Obtains Judgments Against Three Defendants for Insider Trading Prior to Pharmaceutical Merger On November 27, 2023, the Honorable Vincent Marrero of the United States District Court for the Southern District of New York entered judgments by consent against defendants Joseph M. Dupont and Stanley Kaplan, who were each charged with insider trading in the securities of Portola Pharmaceuticals Inc. Previously, on August 9, 2023, Judge Marrero entered a consent judgment against defendant Jarett G. Mendoza, who was also charged with insider trading Portola securities. The SEC’s complaint, filed on June 29, 2023, alleges that Dupont was a vice president at Alexion Pharmaceuticals Inc. when he knowingly or recklessly tipped confidential information to a close friend about an anticipated May 2020 announcement of a tender offer by Alexion to acquire Portola. According to the SEC’s complaint, the close friend traded on that information and then passed the information to Kaplan and Mendoza, who also profitably traded. On the day of the acquisition announcement, Portola’s stock price increased more than 130 percent. On September 15, 2023, and September 19, 2023, respectively, Dupont and Kaplan pled guilty to federal criminal charges for securities fraud in a parallel criminal action before the District Court for the Southern District of New York in United States v. Joseph Dupont et al., 23-cr-00320. Previously, on June 28, 2023, Mendoza pled guilty to securities fraud and related charges in United States v. Jarett Mendoza, 23-cr-00316. Dupont, Kaplan, and Mendoza each consented to judgments enjoining them from violating Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder. In addition, each was barred from serving as an officer or director of a public company. The district court will determine monetary remedies, if any, against these defendants at a later date. The SEC’s litigation is continuing as to the remaining defendants. The SEC’s ongoing investigation is being conducted by Margaret Spillane, Matthew Lambert, and Alison Conn of the New York Regional Office under the supervision of Thomas P. Smith, Jr. The litigation is being led by Ms. Spillane. SEC Complaint