Aug 19, 2021
Former Netflix staffers charged for making $3m from insider trading
The SEC alleged that Sung Mo Jun, a former software engineer at Netflix, was at the centre of a long-running scheme to illegally trade shares using insider information about the company's subscriber growth. According to the complaint, while working for Netflix in 2016 and 2017, he repeatedly passed non-public information to his brother and a close friend who both used it to trade ahead of multiple Netflix earnings announcements. Insider trading is the buying and selling of a listed company's shares or other securities, such as bonds or share options, based on information that is not available to the public. In many countries, including the US and UK, insider trading is illegal as it is seen as giving an unfair advantage to those with access to the information. The definition of an insider can often be broad, and may cover not only people with direct access to confidential information but also those they share it with and who make trading decisions based on that information.
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