Horwich Authors Publication on Insider Trading in the Clinical Trial Setting

Northwestern University Pritzker School of Law & Economics Series No. 22-12
In an article for Northwestern University’s Law and Economics, Partner Allen Horwich and Northwestern University Associate Vice President for Research Crista Brawley present a complete case study of clinical trial-specific insider trading law, with recommendations that can be applied to other industries.

Allen and Crista discuss the basic principles of insider trading and summarize how clinical trials are conducted and regulated. They also discuss the ways in which non-public information, material to the stock price of the sponsor of the trial might be used to trade or tip. Their analysis demonstrates that anyone involved in a clinical drug trial must be attuned to the risks of misusing material non-public information, including in scenarios not yet pursued by the SEC. By understanding the potential reach of the law, those involved in or who learn about a specific trial can take steps to avoid or minimize the risk of liability.

Read the full paper here.