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SEC alleges insider trading in Score Media takeover

2022-06-13 20:53 ET - Street Wire

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by Mike Caswell

The U.S. Securities and Exchange Commission and the U.S. Department of Justice have filed insider trading charges over the 2021 takeover of Score Media and Gaming Inc., a Toronto Stock Exchange listing with a well-followed app called theScore. The SEC claims that a Pennsylvania man named David Roda learned about the $2-billion takeover before it became public and bought out-of-the-money options. (All figures are in U.S. dollars.) After the companies announced the deal, he realized $560,762 in profits, the SEC claims.

The allegations are contained in a civil complaint that the SEC released on Monday, June 13, alongside a parallel criminal information sheet filed by prosecutors in Pennsylvania. The complaint identifies Mr. Roda, 36, as a resident of Philadelphia who worked at a subsidiary of Penn National Gaming Inc., which was listed on the Nasdaq. The company operated an on-line sports betting platform, as did Score Media.

The case goes back to March, 2021, when Penn National began talks with Score Media, with the objective of closing a takeover. According to the SEC, the project was highly confidential. The companies limited those who had access to the information on the transaction and used a code name.

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pubco's there is no confidential information. neither pubco on day 1 disclosed talks, or deal imminent, the deals dont happen by fairy. the inside group knew progress, which also hampers selling of stock if they wanted to, so if price was increasing or someone needed cash or wanted a new toy on the inside group, and they became dissuaded from selling--- thats insider trading also. holding.

this is just another case of non disclosure by both companies

Posted by blow at 2022-06-14 09:36

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