Two individuals settled SEC charges for insider trading in a
case concerning the merger of a medical device company (see here and here). A third individual, who was named as a
relief defendant, also agreed to settle with the SEC.
According to the SEC Complaints filed in the U.S. District Court
for the Western District of Oklahoma, John Kenneth Davidson learned
of a possible merger between Covidien PLC and Medtronic PLC and
traded on the information, realizing a gain $19,000. Davidson
tipped off a friend, John Special, who purchased stocks and options
in an account under a third friend's name, Michael Murphy. They
realized $1.182 million and over $359,000, respectively.
To settle the charges:
