{"id":87749,"date":"2024-03-27T00:15:57","date_gmt":"2024-03-27T04:15:57","guid":{"rendered":"https:\/\/www.hedgeco.net\/news\/?p=87749"},"modified":"2024-03-26T23:58:10","modified_gmt":"2024-03-27T03:58:10","slug":"arista-networks-founder-andy-bechtolsheim-charged-with-insider-trading","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/03\/2024\/arista-networks-founder-andy-bechtolsheim-charged-with-insider-trading.html","title":{"rendered":"Arista Networks Founder Andy Bechtolsheim Charged with Insider Trading"},"content":{"rendered":"\n<p>(HedgeCo.Net) The Securities and Exchange Commission has filed insider trading charges against <strong>Andreas \u201cAndy\u201d Bechtolsheim<\/strong>, the founder and Chief Architect of Silicon Valley-based technology company <strong>Arista Networks,<\/strong> Inc. To settle the SEC\u2019s charges, Bechtolsheim agreed to pay a civil penalty of nearly $1 million.\u00a0<\/p>\n\n\n\n<p>According to the SEC\u2019s complaint, Bechtolsheim misappropriated material nonpublic information regarding the impending acquisition of Acacia Communications, Inc., a manufacturer of highspeed optical interconnect products. The SEC alleges that Bechtolsheim, who was Arista Networks\u2019s chair at the time, learned of Acacia\u2019s impending acquisition on July 8, 2019, through his and Arista Networks\u2019s longstanding relationship with another multinational technology company that was also considering acquiring Acacia and consulted with Bechtolsheim concerning the potential acquisition. Immediately after learning this information, Bechtolsheim allegedly traded Acacia options in the accounts of a close relative and an associate. The next day, July 9, 2019, before the market opened, Acacia and Cisco announced that Cisco had agreed to acquire Acacia for $70 per share. That day, Acacia\u2019s stock price increased by 35.1 percent. According to the SEC\u2019s complaint, Bechtolsheim\u2019s trading generated combined illegal profits of $415,726 in the accounts of his relative and associate.&nbsp;<\/p>\n\n\n\n<p>\u201cWe allege that Bechtolsheim, while serving as the chairman of a publicly traded company, abused the trust of a longtime business contact who had shared highly sensitive information about an imminent corporate acquisition,\u201d said Joseph G. Sansone, Chief of the SEC\u2019s Market Abuse Unit. \u201cWe will continue to pursue and prosecute misconduct by trusted insiders at all levels of the corporate hierarchy.\u201d<\/p>\n\n\n\n<p>Without admitting or denying the allegations in the SEC\u2019s complaint, which was filed in the U.S. District Court for the Northern District of California, Bechtolsheim settled the SEC\u2019s charges by agreeing to be barred from serving as an officer or director of a public company for five years and to pay a civil monetary penalty of $923,740.&nbsp;The settlement is subject to court approval.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>(HedgeCo.Net) The Securities and Exchange Commission has filed insider trading charges against Andreas \u201cAndy\u201d Bechtolsheim, the founder and Chief Architect of Silicon Valley-based technology company Arista Networks, Inc. To settle the SEC\u2019s charges, Bechtolsheim agreed to pay a civil penalty [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3,16048,16047],"tags":[],"class_list":["post-87749","post","type-post","status-publish","format-standard","hentry","category-hedgeco-networks-press-releases","category-hedgeco-news","category-hedgecovest-news","category-insider-trading-2"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/87749","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=87749"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/87749\/revisions"}],"predecessor-version":[{"id":87750,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/87749\/revisions\/87750"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=87749"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=87749"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=87749"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}