SEC Drops Insider Trading Case Over J&J Deal

Law360, New York (November 3, 2009, 3:34 PM EST) -- Following a mistrial, the U.S. Securities and Exchange Commission has dropped a suit against the head of a medical device company accused of trading on inside knowledge of Johnson & Johnson’s acquisition of diabetes products manufacturer Animas Corp.

The SEC dismissed with prejudice its allegations against Joseph A. Fontanetta, CEO of Diopsys Inc., in a stipulation of dismissal that Judge Jed S. Rakoff of the U.S. District Court for the Southern District of New York approved Monday.

Following seven days of trial that took place between...
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