• STOCK Act Update: SEC Confirms Criminal and Civil Investigations of Potential STOCK Act Violation; Moves to Enforce Subpoena to Congressional Committee and Staffer
  • July 9, 2014
  • Law Firm: Sullivan Cromwell LLP - New York Office
  • A recent SEC court filing confirmed the existence of enforcement investigations into a potential violation of the Stop Trading on Congressional Knowledge (STOCK) Act. In a subpoena enforcement action filed against the House Ways and Means Committee and the staff director of its Health Subcommittee, the SEC revealed details of criminal and civil insider trading investigations arising from a potential leak of reimbursement rates announced by the U.S. Centers for Medicare and Medicaid Services (CMS) after the close of the stock market on April 1, 2013. News of the rates, which were more favorable than expected, lifted certain healthcare stocks.