Brattle Experts Discuss Economic Considerations for Rule 10b5-1 Trading Plans and Trends in Related Litigation
Published in Westlaw Today
In June 2025, the US Department of Justice charged Terren Scott Peizer – the former CEO and chair of Ontrak – with securities fraud and insider trading based on material non-public information (MNPI). It was the first criminal case based exclusively on the alleged misuse of Rule 10b5-1 trading plans, which the US Securities and Exchange Commission (SEC) amended in late 2025 to strengthen investor protections against insider trading.
In a recent article published in Westlaw Today, Brattle experts outline the SEC’s amendments and discuss US v. Terren Peizer in the broader context of evolving scrutiny of Rule 10b5-1 trading plans. They examine what economic research reveals about the use of these plans – both before and after the 2022 amendments – and what the findings imply about future regulatory scrutiny of insider trading. The authors also discuss the broader economic implications for regulators, legal counsel, companies, insiders, and investors.
The article, “Insider trading plans – Economic considerations for Rule 10b5-1,” was authored by Principals Jan Jindra and Shastri Sandy and Associate Angela Golemac.
