Twilio (NYSE:TWLO) stock is on the move Tuesday as the U.S. Securities and Exchange Commission (SEC) weighs in on an insider trading scandal.
Let’s dive into everything investors need to know about the Twilio insider trading scandal below!
- Three Twilio engineers, Hari Sure, Lokesh Lagudu, and Chotu Pulagam, allegedly gained insider information about the company’s performance ahead of its May 2020 earnings report.
- These engineers reportedly passed that info on to four individuals, Dileep Kamujula, Sai Nekkalapudi of Sunnyvale, Abhishek Dharmapurikar, and Chetan Pulagam.
- The information gained from the engineers showed it was performing better than publicly known heading into the Covid-19 pandemic.
- With that information in hand, the individuals they told the insider news to purchased shares of TWLO stock.
- Of them, Kamujula is facing the steepest charges.
- That’s due to them acquiring 257 call options for $133,333 ahead of the earnings report.
- After the report sent TWLO stock soaring, he sold those for a profit of $961,662.
- That could have him serving 45 years in prison.
Monique C. Winkler, Acting Regional Director of the SEC’s San Francisco Regional Office, said the following about the Twilio insider trading scandal.
“We allege that this insider trading ring took advantage of valuable revenue information related to the pandemic at a San Francisco tech company. We are holding these alleged tippers and tippees accountable for their roles in the scheme.”
TWLO stock is up 6.9% as of noon Tuesday.
There’s more stock market news traders are going to want to know about below!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.