The SEC has announced the settlement of an insider trading investigation with David J. Minson in the securities of Blue Apron Holdings, Inc. based on material nonpublic information that Minson misappropriated from an immediate family member, a senior executive at Blue Apron
(the “Blue Apron Executive”).
According to the settlement document, before the market opened on September 29, 2023, Blue Apron announced that it had entered into a definitive agreement to be acquired by Wonder Group, Inc. (“Wonder Group”) through a $13.00 per share cash tender offer (the “Announcement”). During market trading that day, the price of Blue Apron common stock rose by more than 130%.
During September 2023, on at least two occasions, Minson misappropriated information regarding the proposed transaction from the Blue Apron Executive. Minson and the Blue Apron Executive had a close personal relationship and a history, pattern, and practice of sharing confidences. Unbeknownst to the Blue Apron Executive, Minson misappropriated the information in breach of a duty of trust and confidence owed to the Blue Apron Executive by purchasing Blue Apron common stock. Minson obtained realized profits of $550,842.13. By engaging in this conduct, Minson violated Sections 10(b) and 14(e) of the Exchange Act and Rules 10b-5 and 14e-3(a) thereunder.
Minson entered into a settlement agreement with the SEC, wherein he agreed to pay disgorgement of $550,842.13, prejudgment interest of $41,606.34, and civil penalties of $550,842.13.
It could have been worse. If he went to hearing, the penalties could be double.
Sallah Astarita & Cox, LLC - Securities Litigation Attorneys - former SEC Staff Attorneys and Brokerage Firm Counsel representing issuers, advisors and investors nationwide in securities investigations, disputes, and arbitrations, nationwide. Call 212-509-6544.
Mark Astarita is a nationally recognized securities attorney, who represents investors, financial professionals and firms in securities litigation, arbitration and regulatory matters, including SEC and FINRA investigations and enforcement proceedings.
He is a partner in the national securities law firm Sallah Astarita & Cox, LLC, and the founder of The Securities Law Home Page - SECLaw.com, which was one of the first legal topic sites on the Internet. It went online in 1995 and is updated daily with news, commentary and securities law related links.
