"Why In-House Counsel Need to Watch for Insider Trading, Public Disclosure Issues From COVID-19" from Corporate Counsel is a good reminder of the heightened risks of insider trading and tipping on information about coronavirus-related impacts that may impact the company's performance. The article is particularly timely, as many companies are opening their trading windows following quarterly or year-end earnings releases at a time when information gathering and analysis concerning the virus and its potential impacts is rapidly accelerating.
The article suggests companies:
- Identify groups within the organizations that have access to insider information related to the coronavirus
- Distribute the organization’s insider trading policy to all employees and require them to acknowledge review and receipt electronically
- Consider whether additional measures such as blackout periods, heightened preclearance procedures and additional training, are warranted
The article further addresses commonly arising coronavirus-triggered securities law disclosure topics.
See our recent report: "Insider Trading Policies: Good Governance," and additional information & resources on our Insider Trading/Section 16 page. This post first appeared in the weekly Society Alert!