Health Care Executives Accused Of Insider-Trading SchemeThe Wall Street Journal: Health Care Executives At Center Of Alleged Insider-Trading Scheme
Secrets passed at recreational basketball games, code words and calls on a pay phone outside a Virginia K-Mart marked what prosecutors say was a five-year insider-trading scheme fueled by corporate secrets leaked by health care executives. Federal prosecutors in New Jersey have accused six men -- including former executives at pharmaceutical company Celgene Corp. and medical-technology firm Stryker Corp. and some of their high-school friends -- of passing corporate secrets about their companies and using that information to make profitable trades. The scheme allegedly began in 2007, involved 11 corporate announcements and resulted in more than $1.4 million in illicit profits (Bray, 11/19). This is part of the KHN Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.