The SEC slapped a senior Abbott (NYSE:ABT) executive and baseball great Eddie Murray with insider trading charges stemming from Abbott’s $2.8 billion acquisition of Advanced Medical Optics in 2009, according to the Wall Street Journal.
Advanced Medical Optics
Federal investigators are looking into possible insider trading in Abbott’s 2009 buyout of Advanced Medical Optics for $2.8 billion by baseball players including Hall of Fame slugger Eddie Murray and former AMO head James Mazzo.
Citing "people familiar with the 3-year-old probe," the Reuters news service said securities regulators and prosecutors are investigating whether Murray acted on advance notice of the deal. Murray has not been charged.
MASSDEVICE ON CALL — The SEC charged former Orioles baseball player Doug DeCinces alongside three others with insider trading ahead of an Abbott (NYSE:ABT) acquisition, raking in $1.7 million in illegal profits.
DeCinces agreed to pay $2.5 million to settle the charges that he began purchasing shares of Advanced Medical Optics on information from someone inside the company and tipped three others who also traded on the confidential information.
The SEC charged a personal injury lawyer in California with insider trading, accusing Dean Goetz of stealing confidential information on Abbott’s (NYSE:ABT) $2.8 billion acquisition of Advanced Medical Optics from his daughter, who was a lawyer working for AMO at the time.
The agency accused Goetz of reaping an illegal $11,000 profit trading on AMO stock just before the deal went public in January 2009. Unbeknownst to Goetz’s daughter, working on the deal during the winter holidays at her parents’ house, Goetz allegedly stole the information he used to buy 900 shares of AMO stock on Jan. 8, 2009, according to the SEC.