A Medical Device Daily

The U.S. Securities and Exchange Commission has filed charges alleging insider trading against a former scientist of Invitrogen (Carlsbad, California).

The Commission’s complaint charges that Harry Yim, of Vista, California, traded in Invitrogen stock immediately upon learning of non-public information about the company’s poor financial results and that, as a result of his improper stock sales, he avoided losses of about $79,500 that he otherwise would have incurred from the stock decline.

The commission seeks an order permanently enjoining Yim against future violations of the federal securities laws, requiring Yim to pay disgorgement in the amount of the losses avoided, plus prejudgment interest on that amount, and imposing a civil penalty.

The complaint, filed in federal district court in San Diego, California, says that Yim attended a company-wide, employee-only meeting in July of 2004, where the company’s CEO disclosed non-public information regarding the company’s negative financial performance. Yim then immediately attempted to sell his Invitrogen stock and continued his efforts until, on July 19, 2004, he sold all the shares of Invitrogen stock he could.

On July 21, 2004, Invitrogen reported its 2Q earnings and lowered its revenue projections for the remainder of its fiscal year. After Invitrogen’s July 21, 2004 earnings release, Invitrogen’s share price fell by more than 20% and its trading volume rose to over 14 million shares — a 1,546% increase from the previous day’s volume.