« NIH May Ban Its Scientists from Consulting | Main | Agreement Protects Native Samoan Intellectual Property »

September 30, 2004


Jeff Donohue

A couple of thoughts: the SEC can and does track "small fish" (particularly those who are posting on chat boards), so an enforcement action is not outside of the realm of possibility. One doesn't need to necessarily announce that he or she is buying or selling to be detected.

That being said, I think that you've correctly identified a couple of major issues with bringing a 10b-5 claim. Probably the biggest is whether the information that the participant has is material (this is one patient's experience, which may be a placebo).

I've heard of clinical trial sponsors including no trading clauses, but the bigger problem may be information sharing (which there's not a lot that can be done about, given that patients will likely demand that they can talk about their symptoms with whomever they want to).

*** Disclaimer: This is just my opinion, not my employer's. ***

The comments to this entry are closed.